DY: Japanese Yen Remains Little Changed on Tuesday, Swiss Franc Tumbles Lower
The USD/JPY remains little changed on the day after falling to a low of 89.87 during the overnight session, and the pair may continue to trend higher throughout the U.S. trade as the reserve currency benefits from safe-haven flows, while the USD/CHF is up 110pips on the day to reach a high of 1.0339.
The USD/JPY remains little changed on the day after falling to a low of 89.87 during the overnight session, and the pair may continue to trend higher throughout the U.S. trade as the reserve currency benefits from safe-haven flows. The dollar-yen is slightly higher from the open and may continue to advance after moving only 59% of its daily ATR however, the lack of momentum to push back above the 20-Day SMA at 90.48 may keep the pair within a broad range over the next 24 hours of trading as the Federal Reserve is scheduled to set interest rates tomorrow at 19:15 GMT. Nevertheless, as the USD/JPY marks higher lows in November, we could see the dollar-yen continue to retrace the decline from the previous month and may test the October high (92.34) for a top. However, if the pair fails to push above the 93.00 level, we are likely to see price action hold below the 100-Day SMA at 93.03, and could hold a broad range going forward as investors weigh the prospects for a sustainable recovery.
The USD/CHF is up 110pips on the day to reach a high of 1.0339, and the pair may trend higher throughout the month after finding at bottom in October. The dollar-franc has moved 137% of its ATR, with the 30-minute RSI rising to 72, but the lack of momentum to hold above the 50-Day SMA at 1.0331 may lead the pair to fall back ahead of the FOMC rate decision due out tomorrow as investors weigh the outlook for future policy. Nevertheless, as the near-term rally in the USD/CHF remains well supported by the 10-Day SMA at 1.0185, we may see the pair continue to retrace the sell-off from the previous month, and may work its way back towards 1.0480-90( the 23.6% Fib retracement of the March high to the October low) as the pair bounces back from the yearly low (1.0046).
