On the daily chart, bears are trying to keep USD/JPY inside the long-term downtrend channel.
Trading plan for August 7
It’s a forecast for August 7.
- The US dollar index has been climbing to the psychological level at $95.50. The index had been trying to break above it since the end of June. The index needs a strong boost to hit above $95.50 finally. No important data will be released on Tuesday. However, if there are clues on the further escalation of trade wars, the index will climb higher. The next resistance is at $96. Otherwise, the trading within $95-95.50 is anticipated.
- The Australian dollar is anticipated to be volatile on Tuesday, as the central bank will release the interest rate (7:30 MT time). Although any changes in the interest rate are not anticipated, clues on the future monetary policy will define the direction of the AUD. Up to now, AUD/USD has been trading below the pivot point (0.7395). If the central bank is hawkish, the pair will be able to move above the pivot point that will become a positive signal for the pair. The resistance will lie at 0.7415. Otherwise, it will move further down to the support at 0.7350. Moreover, MAs are moving down, that is a negative signal for the pair.
- The USD is stronger, other currencies suffer a lot. GBP/USD has reached the support at 1.3925. On the weekend, the UK International Trade Secretary said that the Brexit negotiations are likely to end in failure. Any deadlocks in the negotiations cause a fall of the GBP. If the US dollar index is strong on Tuesday, the pair will move to the next support at 1.2850. Otherwise, it has chances to recover. The resistance is at 1.3050.
On the daily chart, EUR/JPY reached 88.6% target of the “Bat”.
Bearish Ichimoku Cloud with horizontal Senkou Span A and B; a cancelled dead cross of Tenkan-sen and Kijun-sen with horizontal lines.
Narrowing bearish Ichimoku Cloud with rising Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen, but rising Tenkan-sen; the bulls could breakout the Kijun’s resistance.
GBP/JPY broke support level 141…
Recommendation: BUY 0,9765 SL 0,971 TP1 0,985 TP2 0,9895…