04.06.201210:12 Forex Analysis & Reviews: Technical analysis of USDX & USD/JPY for May 19, 2015

Long-term review

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The USDX paused the 4-day falling streak and gave a strong close after more than a month. After a 2-day consolidation, the price edged higher. The index is likely to make a double bottom at 93.13. The level of 93.13 is the 161.8FE entire fall from the peak. Resistance is seen at 94.60 and 95.35 100Dema and 100Dsma respectively. Technically, bearish views remain in play until the price closes below 100dema & sma. 20Dsma is found at 95.15. Ahead of the FOMC meeting, the greenback is trading higher against most majors and USD related pairs. Today, we expect 94.50 initially, later 94.70 and 94.90. Intraday support is found at 94.15 and 93.65. Earlier, we had recommended selling at 96.50 with targets at 93.00 and 91.50 in the near term. Yesterday, we cancelled the 91.50 view. In case the price closes below 93.13, the next support is seen at 91.50 and 90.50 200Dsma and 200Dema respectively.

USD/JPY

The pair extended the winning streak in for the 3rd consecutive day as well. It gave a strong close after 10 sessions. The pair is slowly approaching the 10-day descending trend line and a month descending trend line. In case the price closes above 120.50, bulls will aim at 122.0. Today, the pair managed to hold the 50Dsma. The strong momentum above 120.10 towards 120.25, 120.50, 120.85, and 121.00 is expected within a day and the resistance is seen at 120.30 and 120.85. We recommended buyingbetween 119.00 and 118.60 sl 118.50 on May 14. Support is found at 119.80, 119.50 and 119.30. Until the pair closes above 119.20, bulls aim at 120.90 in a day or two. Today, data on the US housing are expected to be printed negative. Use a dip to buy will preferable.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com

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