Technical Studies Trend  Indicators
Daily Chart Rising Rising
Hourly Chart Rising Overbought

Trade Idea Entry  Objective  Stop Loss
Buy  102.50-102.55 103.08, 103.60 102

Technical Commentary 

Pair has breached the trend line resistance on daily chart and appears posed to test 103.08 levels. The indicators on Hourly and 15 minute charts are currently overbought, hence pair may take a breather around 103.08. The daily indicators still have some room before they hit the overbought zone. Technically, I don't expect the pair to take out the retracement level of 103.08 today especially since the intraday indicators are in overbought zone. I recommend waiting for prices to correct a bit whereby the intraday indicators would be better positioned for further uptrend.

Macro Commentary 

US Q2 GDP estimate managed to beat market expectation by big margin due to which US Dollar has strengthened against major currencies. US ten year treasury yields have rose to 2.54%. Better than expected US GDP means increased possibility of sooner than expected interest rate hike in US. However it is highly unlikely that Federal Reserve would give clues regarding the schedule of interest rate hikes. US Fed is also expected to Taper QE by additional $10 billion today. However the Taper in itself would be a non event. Thus USD/JPY may correct up to 102.50 levels post FOMC meet. However Yen would remain under pressure going into Friday's non farm payroll data.  

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