Monday May 11 FX market update - USD/JPY in focus

The US Dollar was bullish against all of its major pairs on Monday.

Charts (6)

Good afternoon, 

Monday May 11 FX market update - USD/JPY in focus

The US Dollar was bullish against all of its major pairs on Monday. On the economic data front, no major economic data was released. 

On Tuesday, the National Federation of Independent Business's Small Business Optimism Index for April is expected to fall to 84.0 on month, from 96.4 in March. The Bureau of Labor Statistic's Consumer Price Index for April is expected to decline 0.8% on month, from -0.4% in March. Finally, the Monthly Budget Deficit for April is expected to jump to 737.0 billion dollars on month, from 160.3 billion dollars in March.                                  

The Euro was bullish against most of its major pairs with the exception of the CHF and USD. In Europe, there was no major economic data disclosed.

The Australian dollar was bearish against most of its major pairs with the exception of the NZD and JPY.

Regarding major FX pairs,

EUR/USD fell 26pips to 1.0813 the day's range was 1.0803 - 1.0856 compared to 1.0815 - 1.0876 the previous session.

GBP/USD dropped 73pips to 1.2337 the day's range was 1.2283 - 1.2438 compared to 1.2355 - 1.2467 the previous session.

USD/JPY jumped 99pips to 107.64 the day's range was 106.40 - 107.77 compared to 106.22 - 106.75 the previous session.

USD/CHF gained 11pips to 0.9724 the day's range was 0.9696 - 0.9737 compared to 0.9681 - 0.9739 the previous session.

AUD/USD declined 41pips to 0.6491 the day's range was 0.6457 - 0.6561 compared to 0.6493 - 0.6548 the previous session.

USD/CAD rose 86pips to 1.4013 the day's range was 1.3900 - 1.4043 compared to 1.3909 - 1.3996 the previous session.

The dollar index was up 0.43pt to 100.161 the day's range was 99.666 - 100.281 compared to 99.097 - 99.944 the previous session.

FX pair in focus, The USD/JPY pair remains in focus on an intraday chart after having an impressive up-move of almost 100 pips today. In Friday's FX market wrap, we mentioned a continuation higher would be likely after confirming a bottom triangle pattern. The pair continues to climb since Friday's breakout breaking above previous resistance set at 107.20. The pair remains supported by its 20-period moving average in the uptrend. A break below the 20-period MA and key support at 107.50 could signal a trend reversal. 

Source: GAIN Capital, TradingView

Happy trading.

Build your confidence risk free

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.