Technical Overview of USD/JPY, EUR/USD and USD/CHF Currency Pair

USD JPY

USD traded lower against JPY and closed at 111.55.

• USD/JPY has backed off from session highs on haven demand for yen.
• Coronavirus outbreak is likely weighing over risk sentiment.

USD/JPY is trimming gains as yen sellers are struggling to absorb buying pressure amid risk-off mood in the financial markets.

The Chicago Fed National Activity Index (CFNAI), released by Federal Reserve Bank of Chicago, is a monthly index designed to gauge overall economic activity and related inflationary pressure.

According to the Analysis, pair is expected to find support at 111.31 and a fall through could take it to the next support level of 111.22. The pair is expected to find its first resistance at 111.61 and a rise through could take it to the next resistance level of 111.70.

EUR USD

EUR traded lower against USD and closed at 1.0821.

• EUR/USD is on the offer as coronavirus is spreading in Italy.
• The bulls need a better-than-expected German IFO reading.

The selling interest around the single currency is looking to gather steam amid reports stating a rise in the number of coronavirus cases in the north of Italy.

This German business sentiment index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).

The IFO Current Assessment released by the CESifo Group is closely watched as an indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).

According to the Analysis, pair is expected to find support at 1.0819 and a fall through could take it to the next support level of 1.0812. The pair is expected to find its first resistance at 1.0843, and a rise through could take it to the next resistance level of 1.0850.

USD CHF

USD traded higher against CHF and closed at 0.9805.

USD/CHF bounces off the short-term key support confluence comprising 21 and 50-day EMA as well as 38.2% Fibonacci retracement.
200-day EMA, 61.8% Fibonacci challenge buyers amid bullish MACD.

USD/CHF registers 0.21% gains while taking the bids around 0.9805 during the early Monday. The pair recently reversed from 21/50-day EMA and 38.2% Fibonacci retracement of October 2019 to January 2020 declines. Also supporting the pullback are bullish signals from MACD.

According to the Analysis, pair is expected to find support at 0.9784 and a fall through could take it to the next support level of 0.9777. The pair is expected to find its first resistance at 0.9806, and a rise through could take it to the next resistance level of 0.9813.

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Author: Mark Burg