In early trading this morning the USD/JPY hit a low around the 134.782 area temporarily, but since touching this ratio the Forex pair has reversed higher. The long term bullish run of the USD/JPY touched values not seen since 1998 recently and speculators may not want to give up on this higher territory quite yet. While the lower move the past handful of days maybe enticing, short term traders need to acknowledge a few considerations.

The USD/JPY was trading near 137.000 on the 29^th of June and this morning’s low was a healthy dose lower with a recorded value of nearly 134.782 as written above previously.  However, traders need to know that U.S financial institutions are on holiday today, and many of the American financial houses began shuttering their doors last Friday. While such a simple reason for a lack of buying from the U.S side may sound too easy, it is often the evident things that prove worthwhile.

Yes, the USD/JPY does look absurdly high and overbought, and speculative traders cannot be blamed for wanting to attempt contrarian positions which sell the USD/JPY. However, the long term trend cannot be merely ignored. Technical traders do have a reason to suspect the Japanese Yen is far too weak and will eventually begin to get stronger and make the USD/JPY move lower, but when this will take place is still an open question.

Short term support levels this morning seemed to cause a bounce higher, producing purchasing of the USD/JPY.  With the absence of the U.S financial institutions until tomorrow, trading conditions are likely to remain choppy over the next twenty four hours. However, upon the return of full market volume to Forex, the USD/JPY is likely to search for equilibrium. If the USD/JPY is languishing below the 135.250 mark as of tomorrow, this may be considered a place to attempt buying positions and search for upside momentum.

The USD/JPY has shown a strong ability to trend and betting against this long term move to suddenly disappear in the near term may prove an expensive wager.  The U.S Federal Reserve is maintaining its hawkish interest rate rhetoric while the Bank of Japan continues to remain dovish. These viewpoints are unlikely to change within the next couple of weeks. Support levels in the near term for the USD/JPY may prove to be intriguing places to ignite buying positions, which seek moves towards technical resistance the next couple of days as speculative wagers.

USD/JPY Short Term Outlook

Current Resistance: 135.610

Current Support: 135.130

High Target: 136.020

Low Target: 134.600

DOGE/USD has produced a powerful dose of consolidation the past five days of trading, as it has essentially lingered within the 8 cents framework.

Once one of the favorite speculative cryptocurrencies in the world, Dogecoin has seen a strong dose of consolidation displayed within its trading sphere the past handful of days.  The 8 cents price has seen an array of values above this ratio since the 19^th of May, but DOGE/USD has not been below the 0.0814 mark or above the 0.08882 levels since then. Traders who are die-hard speculators have been drawn to Dogecoin the past couple of years because it has provided plenty of volatility to bet on.

The long term bear cryptocurrency market has pushed DOGE/USD to long term lows and its trading volume is diminishing in overall numbers.  Dogecoin is trading at one year lows and if a sudden burst of selling were to develop it could find that a sincere test of values from April and March of 2021 could be displayed.

The broad cryptocurrency market remains troubling regarding its nervous sentiment.  However, Dogecoin’s major counterparts have seen reversals ebb and flow. Yes, the trading in DOGE/USD as it moves within the 8 cents juncture does produce large percentage changes of 10% within a blink of an eye, but the lack of a real move towards the 9 cents level the past couple of days may be troubling regarding sentiment in Dogecoin. Traders need to take into consideration the fees they pay for speculating on DOGE/USD, and calculate if the winnings from short term trades equate into gains after transaction fees are charged.

While a large amount of nervous sentiment remains in the broad crypto market, this may signal less people are willing to speculate on DOGE/USD, which could mean it will remain in a consolidated mode. If DOGE/USD fails to lift higher when reversals are seen in the broad crypto market, even for a short duration, this could signal traders are being cautious with Dogecoin and expect another selloff to develop technically.

If DOGE/USD were to fall below the 0.0835 mark, this would be a negative sign short term. Speculators need to use their risk management wisely when trading DOGE/USD. The consolidation within Dogecoin could evaporate quickly.

Cautious traders who remain skeptical of the current trading conditions in the cryptocurrency market and believe more selling will be seen may want to be sellers of DOGE/USD. Looking for upside price action towards nearby resistance levels like the 0.0873 mark and then launching ‘short’ positions while aiming for support below could be the correct bet within Dogecoin in the short term.

Dogecoin Short-Term Outlook

Current Resistance: 0.08710000

Current Support: 0.08430000

High Target: 0.08880000

Low Target: 0.08230000

Our expectations are for a further corrective decline for the index during its upcoming trading.

The Dow Jones Industrial Average slipped down during its recent trading at the intraday levels, to incur losses in its last sessions by -2.82%. It then lost the index towards -981.36 points to settle at the end of trading at the level of 33,811.41, after its decline in trading on Thursday by -1.05%. The index recorded a fourth consecutive weekly loss of -1.86%.

All 30 components of the index declined, with Caterpillar Inc. share leading the list of the most declining stocks by percentage. Which fell by -6.55%, followed by Verizon Communications Inc. by -5.64% and Nike Inc. Cl B at -4.72%.

The reason for the pressure on the index appeared to be the escalating intensity of the Federal Reserve’s rhetoric to dramatically and rapidly increase monetary policy in the face of rising inflation that threatens to derail the economic recovery.

Price traders responded by ramping up bets for a 50bp rate hike for the next three meetings of the Federal Open Market Committee. The US preliminary GDP growth is due on Tuesday, which will show how much the economy has grown during the month of March.

This led to a rebound in long-term Treasuries, which reached their highest levels since 2018.

Technically, the index in its recent trading was subjected to negative pressure as a result of surpassing the support of its simple moving average for the previous 50 days, in light of the dominance of the corrective bearish trend in the short term, which means the possibility of seeing more corrective declines in the coming period, especially with the emergence of a negative crossover in the strength indicators. After reaching overbought areas, this comes in light of the index’s trading along a major bullish slope line in the medium term, as shown in the attached chart for a (daily) period, which may put an end to those corrective declines in the index.

Therefore, our expectations are for a further corrective decline for the index during its upcoming trading, as long as the resistance level 35,372 remains intact, to target the first support levels at 33,272.