Hourly chart- Falling channel
Breach of rising trend line followed by a breach of rising channel to the downside, falling channel
Channel support could be put to test
Pair’s retreat from the high of 105.56 to a low of 105.12 in last couple of hours despite stimulus talk by Abe suggests the spot is at a risk of a re-test of yesterday’s low of 104.19. The level could be breached and the falling channel support at 103.52 could be put to test.
On the higher side, only a hourly closing above falling channel would suggest trend reversal and may help the pair cut through strong resistance at 106.64
Japan stimulus details
PM Abe informed us today – Economic stimulus to be in excess of JPY 28 trillion
JPY 13 trillion would be on fiscal measures
Only JPY 2 trillion earmarked for this calendar year
Cabinet due to approve the stimulus on August 2
Breach of rising trend line followed by a breach of rising channel to the downside, falling channel
Channel support could be put to test
Pair’s retreat from the high of 105.56 to a low of 105.12 in last couple of hours despite stimulus talk by Abe suggests the spot is at a risk of a re-test of yesterday’s low of 104.19. The level could be breached and the falling channel support at 103.52 could be put to test.
On the higher side, only a hourly closing above falling channel would suggest trend reversal and may help the pair cut through strong resistance at 106.64
Japan stimulus details
PM Abe informed us today – Economic stimulus to be in excess of JPY 28 trillion
JPY 13 trillion would be on fiscal measures
Only JPY 2 trillion earmarked for this calendar year
Cabinet due to approve the stimulus on August 2
