USD/CHF eyes 0.9000

The USD/CHF is rising for the second day in a row and recently printed a fresh daily high at 0.8986.

The USD/CHF is rising for the second day in a row and recently printed a fresh daily high at 0.8986. Price remains near daily highs after rebounding at 0.8975 (American session low).

During the last 30 hours the pair has risen 70 pips and now is on its way toward the highest daily close in a month, on the back of a strong US dollar and a decline of the Swiss Franc across the board.

USD/CHF approaches key resistance 

To the upside, if the price rises further it will face 0.9010/15, where multiple daily highs from June lie. Also the USD/CHF has been unable to post a daily close above 0.9000 since February.

A break higher could trigger a bullish signal. To the downside, immediate support lies at 0.8975 and below here at 0.8960 and 0.8900.

USD/JPY falls from highs to 101.60

The US dollar got a knock after weaker than expected economic data in US and now it is falling against the Japanese Yen.

The US dollar got a knock after weaker than expected economic data in US and now it is falling against the Japanese Yen.

After falling around 20 pips from 101.80, the USD/JPY is now testing the bottom of the recent range at 101.60. Currently, USD/JPY is trading at 101.65, down 0.02% on the day, having posted a daily high at 101.81 and low at 101.63.

USD/JPY spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.

USD/JPY sentiment

"The retreat from the 61.8% retracement of the 102.25/101.07 decline is accelerating after weak US industrial production data," comments Jamie Coleman from FXBeat. "Hopes for a solid Q2 rebound in GDP are beginning to fade."

Next support is at 101.60 before 101.50 and 101.40.

USD/JPY seen at 103 in 6 months - UBS

The UBS analyst team commented that BoJ Kuroda saying he sees ‘no reason for the yen to strengthen against the dollar’, reinforces their view of USD/JPY at 103.00 and 105.00 over 6 and 12 months respectively.

The UBS analyst team commented that BoJ Governor Kuroda saying he sees 'no reason for the yen to strengthen against the dollar', reinforces their view of USD/JPY at 103.00 and 105.00 over 6 and 12 months respectively.

Key Quotes

“The Bank of Japan kept its pace of monetary base expansion unchanged as expected, at JPY 60 – 70 trn per year. BOJ Governor Kuroda reiterated his confidence of achieving the 2% inflation target, implying that additional easing is unlikely”.

“However, he added that he sees ‘no reason for the yen to strengthen against the dollar’, in view of the diverging monetary policies between the US and Japan”.

“This reinforces our view for a modest rise in USD/JPY to 103 and 105 over 6 and 12 months respectively”.

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