Daily Market Analysis By FXOpen

[FXOpenTeam]

Smart Money Concept and How To Use It in Trading

In the world of forex trading, understanding the movements and strategies of the market’s most influential players like banks and hedge funds—termed “smart money”—can provide retail traders with a significant advantage. This FXOpen article offers a deep dive into the Smart Money Concept, discussing how institutional investors influence market trends and how retail traders can align their strategies with these market movers for potentially better outcomes.

Understanding the Smart Money Concept

The Smart Money Concept (SMC) centres on the principle that the movements of large institutional investors in financial markets can offer valuable clues to retail traders about future market trends.

These institutional investors, often referred to as “smart money,” include banks, hedge funds, and investment firms, wielding significant capital power to influence market directions. The core of SMC lies in the belief that by observing and understanding the trading behaviours and patterns of these entities, retail traders can align their trading strategies to potentially tap into more favourable results.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

[FXOpenTeam]

What Is a Darvas Box Theory and How Does It Work in Trading?

The Darvas Box Theory, pioneered by Nicolas Darvas in the 1950s, has transcended its stock market origins to become a valuable tool for forex traders. This method leverages specific price movements and patterns, known as the Darvas Box, to track market trends and make strategic trading decisions. In this article, we’ll break down Darvas’s theory, its rules, and how to apply it to the forex market.

Background of Darvas Box Theory

The Darvas Box Theory originated from the practices of Nicolas Darvas, a dancer turned investor, in the late 1950s. While touring, Darvas sought a method to grow his investment portfolio, leading to the development of his unique strategy. This approach, later known as the Darvas Box Theory, was primarily designed for the stock market but has since been adapted for various asset types, including forex.

The strategy’s effectiveness hinges on the identification of specific price movements and patterns—collectively referred to as the Darvas Box pattern. Nicolas Darvas’s strategy was meticulously detailed in his 1960 book, How I Made $2,000,000 in the Stock Market.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

[FXOpenTeam]

USD/JPY Falls Below 150 Yen per Dollar

The yen was last this strong in mid-March this year. News from central banks contributed to the decline in USD/JPY.

Yesterday, the Bank of Japan raised interest rates to levels not seen in the past 15 years. Conversely, the Fed kept rates unchanged as expected but “opened the door” for a possible cut in September, according to Reuters. This news weakened the USD and provided a bullish boost to U.S. stock markets.

This shift highlights the collapse of the “carry trade” strategy, where high U.S. rates and low Japanese rates supported the rise of USD/JPY. From early 2023 to the July peak in 2024, USD/JPY rose by about 23%, but it started declining amid news of Bank of Japan’s currency interventions.

On July 25, analysing the USD/JPY chart, we:
→ Constructed a descending channel (shown in red);
→ Predicted a scenario with a technical rebound from the lower boundary of the red channel.

Since then, USD/JPY climbed to the psychological mark of 155 yen per dollar on July 30, where the downtrend resumed after a false breakout.

How might the USD/JPY situation develop?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Market Reacts Mildly to Fed Decision, Focus Shifts to NonFarm Payrolls

Late July and early August are packed with significant macroeconomic events. This week has already seen rate decisions from the Bank of Japan and the Federal Reserve, with the Bank of England meeting today and the U.S. monthly labour market report due tomorrow. As the U.S. regulator left the rate unchanged at 5.50% yesterday, market participants will now focus on incoming macroeconomic data for further clues on the Fed’s future policy.

GBP/USD

Ahead of today’s Bank of England meeting, the GBP/USD pair remains firmly above the significant support level of 1.2820. The price has tested the 1.2820-1.2800 range three times in recent sessions, so far without breaking through.

Technical analysis of the GBP/USD pair indicates potential for continued growth towards June highs if it holds above 1.2900. A break below 1.2800 could lead to a downward correction towards the crucial range of 1.2700-1.2600.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

META Shares Rise Above $500

Yesterday, after the close of the main trading session, social media giant META reported its second-quarter results, significantly exceeding analysts’ expectations:

→ Earnings per share: actual = $5.16, forecast = $4.72;
→ Revenue: actual = $39.07 billion, forecast = $38.26 billion;
→ Daily active users increased by 7% year-on-year to 3.3 billion;
→ Ad impressions grew by 10%, and ad prices increased by an average of 10%.

CEO Mark Zuckerberg stated that the integration of AI across all platforms, including Instagram, WhatsApp, and Facebook, is driving engagement growth.

Investors were undeterred by the fact that Reality Labs, the division focused on metaverse development, reported a loss of around $4.5 billion for the second quarter, bringing its total loss since its inception in 2020 to $50 billion.

As a result, during after-hours trading, META’s share price rose by 7%, surpassing the psychological $500 level.

What Could Happen Next?

On 19 July, our analysis of META’s chart identified an ascending channel (shown in blue) and highlighted the importance of support at the $455 level.

Since then, the share price attempted to break this level on 25 July, but this led to a surge in demand, with META’s price rising sharply and forming a candle with a long lower wick.

In pre-market trading today, META’s price is above $505, and the main session is likely to open around these levels.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Market Analysis: Gold Price Regains Strength While Oil Price Takes Hit

Gold price started another increase and surpassed the $2,440 resistance. Crude oil is showing bearish signs and might decline below $75.00.

Important Takeaways for Gold and Oil Prices Analysis Today

• Gold price started a steady increase from the $2,420 zone against the US Dollar.
• A key bullish trend line is forming with support near $2,440 on the hourly chart of gold at FXOpen.
• Crude oil prices failed to clear the $78.20 region and started a fresh decline.
• There was a break below a connecting bullish trend line with support at $77.50 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price found support near the $2,320 zone. The price remained in a bullish zone and started a strong increase above $2,400.

There was a decent move above the 50-hour simple moving average and $2,420. The bulls pushed the price above the $2,435 and $2,440 resistance levels. Finally, the price tested the $2,455 zone and the price is now consolidating losses.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

S&P 500 Index Price Falls Amid Negative News

Yesterday, disappointing news about the US economy was released. According to ForexFactory:
→ The ISM Manufacturing PMI fell from 48.5 to 46.8 (analysts expected a rise to 48.8), indicating a decline in industrial production.
→ The number of unemployment benefit claims reached 249,000 – the highest in 12 months.

As a result, US stock indices declined, with bearish sentiment further driven by weak Q2 reports from several companies:
→ Intel decided to halt dividend payments (INTC shares plummeted by 19%).
→ Amazon reported a revenue decline (AMZN shares dropped by 6%).

The outperformance of sectors such as consumer staples, healthcare, and utilities compared to technology stocks suggests that investors fear a recession and are rotating into more stable assets.

Meanwhile, the daily S&P 500 chart (US SPX 500 mini on FXOpen) indicates a vulnerable position – since mid-April, the price has been moving within an upward channel (shown in blue), but today it is near the lower boundary, creating a risk of a bearish breakout.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

USD/CHF Falls to Lowest Level in Nearly Six Months

As today’s USD/CHF chart shows, the exchange rate has fallen below 0.872 – the Swiss franc hasn’t been this strong against the US dollar since early February this year.

Bearish sentiment is driven by:
→ Expectations of a Fed rate cut, weakening the US dollar;
→ Low inflation in Switzerland – today’s CPI data shows -0.2%;
→ Geopolitical tension, particularly the escalation in the Middle East following the killing of Hamas leader Ismail Haniyeh and the anticipated response from Iran.

Market participants appear to view the franc as a “safe haven.”

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Watch FXOpen’s 29 July - 2 August Weekly Market Wrap Video

Weekly Market Wrap With Gary Thomson: GBP/USD, USD/JPY, MSFT and META Shares

Get the latest scoop on the week’s hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

• Market Reacts Mildly To Fed Decision, Focus Shifts To Nonfarm Payrolls
• USD/JPY Falls Below 150 Yen Per Dollar
• MSFT Share Price Plummets After Earnings Report, But It’s Not All Bad
• META Shares Rise Above $500

Stay in the know and empower yourself with our short, yet power-packed video.

Watch it now and stay updated with FXOpen.

Don’t miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.

FXOpen YouTube

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

#fxopen #fxopenyoutube #fxopenint #weeklyvideo

[FXOpenTeam]

What Is Market Capitulation, and How Can You Trade It?

Market capitulation occurs when investors collectively surrender to market fears, leading to a sharp decline in asset prices. This article delves into the mechanics of capitulation, how to identify it, and ways to trade effectively during these tumultuous times.

Understanding Market Capitulation

Market capitulation refers to a phenomenon where a large number of investors simultaneously give up on the market, leading to a rapid and substantial decline in asset prices. This mass surrender is driven primarily by panic and fear of further losses. Capitulation often marks the peak of a bearish trend and is typically characterised by a significant spike in trading volumes and sharp price declines.

Stock capitulation occurs when investors, overwhelmed by fear and uncertainty, rush to sell their assets to avoid further losses. This behaviour is often triggered by prolonged market downturns or significant economic events. For instance, during the COVID-19 pandemic in March 2020, the S&P 500 experienced a nearly 5% drop in a single day, a classic example of market capitulation. This event led to a subsequent 17% rebound in the index over the following week, highlighting how capitulation can precede a market turnaround.

TO VIEW THE FULL ARTICLE, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

The Nikkei 225 Index Has Plummeted to a Nine-Month Low

As shown by the Nikkei 225 (Japan 225 on FXOpen) chart:
→ In less than a month, the index price has dropped by more than 25%, providing grounds to suggest the start of a bear market;
→ The price has approached the psychological level of 30,000 points – the last time the price was this low was in autumn 2023.

Bearish sentiment is being driven by a combination of the following factors:
→ Negative news from the US labour market, published on Friday – this has significantly increased discussions about the likelihood of a recession;
→ The Bank of Japan’s interest rate hike last Wednesday to support the excessively weak yen.

As we wrote on 15 July, while analysing the Nikkei 225 index (Japan 225 on FXOpen):
→ Signs of bearish activity were observed around the 41,330 level;
→ The upward channel may break in the second half of the year.

It turned out that the bullish channel was broken much earlier and in an extremely aggressive manner – the bulls attempted to resume the trend from its lower boundary (shown by the black arrow), taking advantage of the 38,000 support, but were defeated.

What could happen next?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

EUR/USD Analysis: The Rate Has Risen to a Nearly 5-Month High

As shown by today’s EUR/USD chart, the rate rose this morning to 1.096 – its highest level since mid-March.

On one hand, this was driven by the weakness of the dollar. The USD fell sharply against other currencies following the release of labour market news on Friday (data from ForexFactory hereafter):
→ The unemployment rate reached 4.3% – the highest since autumn 2021;
→ In July, employers created only 114,000 jobs (excluding the agricultural sector) compared to the forecast of 175,000. Last month’s figure was 179,000;
→ Wage growth is showing signs of slowing down.

The rapid deterioration of the labour market is an early sign of a recession. This is indicated by the rule of Claudia Sahm, who worked at the Federal Reserve for over 10 years.

On the other hand, the EUR/USD is rising due to the strength of the euro. Today, the Purchasing Managers’ Index (PMI) figures were released in Europe – all are above the 50.0 level, indicating growth in the Eurozone economies.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

How Do Dovish and Hawkish Monetary Policies Affect Markets?

In the intricate dance of global finance, central banks play a leading role, their policies echoing through markets and economies. The terms “dovish” and “hawkish” encapsulate their strategies towards interest rates and money supply, each with profound implications for currency values and investor strategies.

This FXOpen article explores how these stances offer valuable insights for traders in understanding the forex market’s movements and the broader economic landscape.

Understanding Dovish vs Hawkish

In the world of economics, central banks use monetary policy to navigate between stimulating growth and controlling inflation. This delicate balance is often characterised by two primary stances: dovish and hawkish. Understanding these policies is crucial for traders, as they significantly influence domestic economic conditions and the forex market.

TO VIEW THE FULL ARTICLE, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

[FXOpenTeam]

Dollar Adjusts After Disappointing Labour Market Data

The release of very weak data on average wages and the number of new jobs in the US contributed to the dollar’s decline and sharp fluctuations in the currency and stock markets. On Friday, the NonFarm Payrolls report showed that:

• The number of new jobs stood at 114K, while the forecast was 176K;
• The average wage increase was recorded at 0.2%, whereas 0.3% was expected;
• Unemployment rose (4.3% against 4.1%).

A weak labour market coupled with slowing inflation could signal that the Federal Reserve may begin to lower the base interest rate in the coming months.

USD/CAD

At the start of this week, the USD/CAD pair tested two-year highs around 1.3950-1.3900. It has not yet managed to strengthen above this level, but if buyers can hold the price above 1.3800, the pair might attempt to resume growth towards the psychological resistance level of 1.4000. A break of the support at 1.3800-1.3780 could lead to a deeper downward correction towards 1.3740-1.3700.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Nasdaq Composite Index: A Ray of Hope

On July 31, we noted that the Nasdaq Composite Index (US Tech 100 mini on FXOpen) had reached significant support, highlighting trendline A and warning of potential volatility spikes due to fundamental news from the Federal Reserve and earnings season.

Since then, the price of the Nasdaq Composite Index (US Tech 100 mini on FXOpen):
→ Jumped to the 19540 level;
→ But encountered resistance there (indicated by an arrow), as this was previous support;
→ And returned to trendline A.

Thus, we have an argument that can be interpreted as the bulls’ inability to resume the upward trend. The bears seized the opportunity to take control and break below trendline A on August 2.

Contributing factors included:
→ The decline in the Japanese stock market, which we wrote about yesterday. It is possible that the extremely strong sell-off of Japanese company shares affected sentiments in the US.
→ Increasing talks of a recession due to very weak US labour market data (published on Friday, which we also covered yesterday).

At the low point yesterday, the Nasdaq Composite Index (US Tech 100 mini on FXOpen) dropped by 7% from Friday’s close. Of course, this isn’t comparable to March 16, 2020, when the index fell by 12.32%, or October 19, 1987 (known as “Black Monday”), when it dropped by 11.35%. Nonetheless, the mood was grim – as CNBC reports, the stock market had its worst day in about two years. The RSI index fell to the oversold boundary.

But not all is bleak.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Apple (AAPL) Share Price Influenced by Psychological Factors

The first factor is the news that Warren Buffett is halving his position in AAPL shares. Whether this indicates that the legendary investor foresees the company losing its market leadership or a recession threat, Buffett’s authority may create a psychological effect on retail investors and prompt them to sell their shares.

The second factor is the breach of the $200 psychological level. After the strong rise above $200 per share in June, it seemed the price had securely settled above this round number. However, it’s not uncommon for breakout tests to occur, stop-loss orders to be triggered, and the supply-demand balance to shift, resulting in price growth. For example, yesterday’s price action saw the bulls nearly close a 7% bearish gap.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Market Analysis: GBP/USD Dives While EUR/GBP Gains Strength

GBP/USD started a fresh decline from the 1.2860 resistance zone. EUR/GBP is rising and might climb above the 0.8620 resistance.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today

• The British Pound is showing bearish signs below the 1.2800 support.
• There is a key bearish trend line forming with resistance near 1.2750 on the hourly chart of GBP/USD at FXOpen.
• EUR/GBP is gaining pace and trading above the 0.8500 zone.
• There is a short-term contracting triangle forming with support near 0.8570 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair failed to stay above the 1.2860 pivot level. As a result, the British Pound started a fresh decline below 1.2820 against the US Dollar.

There was a clear move below 1.2800 and the 50-hour simple moving average. The bears pushed the pair below 1.2750. Finally, there was a spike below the 1.2680 support zone. A low was formed near 1.2673 and the pair is now consolidating losses.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

How to Trade Commodities? Five Popular Strategies

Whether you’re a seasoned trader or new to the world of commodities, understanding the various available strategies can play an important role in building an effective trading plan. In this article, we’ll explain five commodity trading strategies that you can get started with today.

Commodity Trading Explained

Commodity trading refers to the buying and selling of raw materials and industrial components in the financial markets. While forex trading deals with currencies, commodities trading primarily deals with physical goods. Typically, commodities fall into four broad categories: energy, metals, agricultural, and environmental.

There are many reasons why people buy and sell commodities. Some trade them as a way of hedging against inflation, particularly precious metals. Others might use them to take advantage of a booming economy, as demand for energy, metal, and food usually increases in times of economic growth.

TO VIEW THE FULL ARTICLE, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

[FXOpenTeam]

Analysis of Amazon (AMZN) Share Price After Disappointing Report

On Thursday, Amazon released its second-quarter report:
→ Earnings per share: actual = $1.26, forecast = $1.03;
→ Gross sales: actual = $147.98 billion, forecast = $148.66 billion.

Amazon’s CFO, Brian Olsavsky, attributed the decline in sales to distractions caused by Trump’s news coverage and the Olympics, suggesting people spent more time reading news and less time shopping on Amazon.

As a result, the sales forecast for the third quarter fell short of expectations, with management estimating between $154 billion and $158.5 billion, while analysts’ average estimate was $158.24 billion.

Investors were disappointed by this news, causing Amazon’s share price to drop approximately 9% on Friday, creating a wide bearish gap. On Monday, the price also opened with a bearish gap and continued to fall, creating a precarious situation.

However, by Monday’s close, the bulls had recovered the early trading losses, and on Tuesday, AMZN showed some stability, staying close to Monday’s closing price.

Does this mean the downward trend (with AMZN’s price now more than 20% below its July all-time high) has run its course?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

USD/JPY Analysis: Rate Stabilizes After Tsunami

Less than a month ago, the rate was above 161 yen per US dollar. This week, it dropped below 142.5 yen (approximately -12%).

The strengthening of the Japanese yen was driven by actions from the Bank of Japan and financial authorities:
→ Intervention to support the yen in mid-July;
→ An interest rate hike last week.

On its downward trajectory, the USD/JPY rate broke through:
→ The ascending trendline (shown in purple);
→ The median line of a large ascending channel (shown in blue) that began in 2023;
→ The psychological levels of 160 and 150 yen per dollar.

The bears’ aggression seems to have exhausted near the lower boundary of the blue channel. This was aided by statements from authorities aimed at stabilising financial markets, including the Japanese stock market.

Specifically, Bank of Japan Deputy Governor Shinichi Uchida said: “I believe that the bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile.” He also noted that concerns about the US economy, combined with actions from the Bank of Japan, triggered the volatility.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.