Technical Analysis and Review for 17 Oct 2022


Overview

  • Japanese Yen is languishing near a 32 year low today and the markets are anticipating the Bank of Japan will intervene as it nears the psychological price of 150 per dollar level.

  • UK Chanceller is making a statement at 11am about how he will stabilise the UK economy through a short-term financial plan and a possible resignation from the Prime Minister

  • Empire State Manufacturing Index, a leading indicator of economic health for the US is released today. If positive data is released, we can expect more hawkish interest rate hikes.

  • China Central Bank rolls over policy loans to maintain liquidity, while keeping interest rates unchanged.

USD/JPY - Bullish

Price continues on a bullish trend on the 4-hour chart. It is also still above the Ichimoku cloud. If bullish momentum continues, we expect price to get close to the first resistance around 149.40 today.


Trading Range for Consideration

Open

High

Low

Close

Pivot Point

147.15

148.88

147.04

148.75

148.22

1st

2nd

3rd

Resistance Level

149.40

150.06

151.24

Support Level

147.56

146.38

145.72

USD/JPY 4-hour chart



EUR/USD - Bearish

Price is trading within a descending direction and hovering around the pivot point and below the Ichimoku cloud. Price is still testing the first support at 0.9683, although it has just bounced off this first support. If it breaks through this, it will head to the second support at 0.9645. Alternatively, the price may test the first resistance at 0.9784 and head towards the second resistance of 0.9847.


Trading Range for Consideration

Open

High

Low

Close

Pivot Point

0.9777

0.9809

0.9708

0.9721

0.9746

1st

2nd

3rd

Resistance Level

0.9784

0.9847

0.9885

Support Level

0.9683

0.9645

0.9582

EUR/USD 4-hour chart



GBP/USD - Bullish

On the 4-hour chart the price has reversed and is heading in an ascending direction. If bullish momentum continues, it will test the 1st resistance at 1.1316, if it breaks through it, we expect it to hit the second resistance at 1.1448.

Please note, a press conference is taking place at 11am, which may impact the direction of the GBP.


Trading Range for Consideration

Open

High

Low

Close

Pivot Point

1.1329

1.1367

1.1153

1.1183

1.1234

1st

2nd

3rd

Resistance Level

1.1316

1.1448

1.1530

Support Level

1.1102

1.1020

1.0888

GBP/USD 4-hour chart



USD/CHF - Bullish

Price continues on a bullish trend on the 4-hour chart. It is also still above the Ichimoku cloud, indicating a bullish trend. If bullish momentum continues, we expect price to get close to the first resistance around 1.0093 today. Its currently pulling back slightly, it it continues to pull back, it may retrace to test the first support at 0.9990.


Trading Range for Consideration

Open

High

Low