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Forex: USD/JPY edging lower during early Asia trade

FXstreet.com (Barcelona) - The USD/JPY finished the day down 50 pips at 98.96. The pair was again capped by the upper boundary of the ‘pennant’ formation on the daily chart which has been forming since early April. The economic calendar will be light in the coming session with no data due out from Japan. Currently, USD/JPY is leaking lower during Asia trade, down 14 pips at 98.87.

According to Eamonn Sheridan of Forex Live, “The USD/JPY is once again testing the bids 98.75/80/85/90. There are stops below here but mixed in with more bids so any falls should be limited. Bigger bids again around 98.50, 98.25 and ahead of 98.00 Offers initially on the day at 99.20/30 then larger ahead of and around 99.50.”

The FXStreet.com Trend Index remains Slightly Bullish set up on the daily chart, while the OB/OS Index reads neutral. Initial support sits at 98.52 (the 20dma), followed by 98.29 (the9dma). First resistance sits at 98.94 (the 9dma on 1 hour chart), followed by 99.14 (the 50dma on 1 hour chart). Both short term moving averages and the RSI (14) remain in neutral set up.

Commodities Brief: Precious metals finish lower as US equities continue to outperform

It was another solid day for equities, with the S&P 500 closing at another new all time high of 1625.96. However, the commodities markets were not as fortunate with precious metals and oil unable to finish the day in positive territory. Perhaps it was the interest rate cut by the RBA during the Asia session which helped lead to the weakness in commodities. In any event, gold closed the day sharply lower, down 1.17% at 1451.80, while silver managed a slightly better showing finishing down 0.33% at 23.92 (well off the lows of 23.40). On a final note, oil closed 0.28% at 95.52.
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