The greenback retreats from its 14-year high against major currencies as investors seem take their profits ahead holiday. The dollar index, which measures the strength of the greenback against six major currencies, was seen at 103.02. On Tuesday, the index hit 103.65, which is the highest since December 2002.
However, there is still a chance for the USD to rebound as the Federal Reserve signaled more rate hikes in 2017 as the US economy is expected to grow faster under Donald Trump’s government.
Market probably won’t be too volatile ahead Christmas, but market possibly will watch US data on Thursday including 3rd quarter revised GDP, November durable goods orders and weekly unemployment claims.
Intraday bias for USDJPY is neutral. Price is moving between resistance area at 117.957-118.395 and support area at 116.975-116.537. 20 MA and 50 MA are crisscrossing on hourly chart.
I currently don’t have any plan to trade USDJPY today. However, if you insist to trade USDJPY today, you need to watch the support and resistance area. You should look for sell signal within the resistance area and/or buy signal within the support area.
Be careful if the price managed to break the resistance 118.395 because it will turn the intraday bias to bullish and possibly will push USDJPY higher up to 118.833-119.324. On the contrary, if the support 116.537 breaks, USDJPY possibly will fall deeper to 116.099-115.608.
Plan: Stand aside