Note the comments ("Notes of interest") in the first table of the FX Board PDF attached to this post.
Our chief focus next week will be on whether the recent weakness in commodity
currencies extends, whether the reversal back to strength in sterling (especially in EURGBP
discussed below) extends, and whether USDJPY
continues higher after this weekend's G7 summit, which could result in a further change of heart on the yen.
is making a bid to close at its highest weekly closing level since early 2015 with only 1.1200 intra-week levels from earlier this year barring the way for further upside now. With a recent firming in the USD, this has parity possibly in play for USDCHF
sooner rather than later. Stay tuned.
USDJPY is hitting ont he next key resistance level, the Ichimoku cloud bottom and could see further upside to the cloud top next week if this weekend's G-7 summit in Japan casts a shadow over the JPY. The chart has already largely neutralized the downside momentum and only needs a pull back to the sub-112 highs to more fully emphasize that the lows are in for now.
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We're not quite there yet, but we have interesting flat-line levels in play if this GBPJPY rally extends next week after recent action has neutralized the downside threat. As well, the Ichimoku cloud is rather quickly descending by late next week, and coincides with a somewhat sloppy, upside down head and shoulder formation.