26 / 09 / 2018 | Technical Analysis

Technical Analysis 26.09.2018 – EUR/JPY Ichimoku Clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (132.73). One of the previous maximums of Chikou Span line is expected to be a resistance level (133.17).




On the daily chart Tenkan-sen line is above Kijun-sen, both lines are directed upwards. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (131.62). One of the previous maximums of Chikou Span line is expected to be a resistance level (133.07).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
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25 / 09 / 2018 | Technical Analysis

Technical Analysis 25.09.2018 – AUD/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the blue line is directed upwards, while the red one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (81.50). One of the previous maximums of Chikou Span line is expected to be a resistance level (82.20).




On the daily chart Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (81.49). The closest resistance level is the lower border of the cloud (82.31).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
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25 / 09 / 2018 | Market News

U.S. Federal Reserve to announce interest rate decision

In the evening of Wednesday September 26th 2018 markets will be waiting for the announcement of the Federal Open Market Committee’s (FOMC) decision regarding interest rates. The US Federal Reserve (Fed) started its two-day meeting on Tuesday September 25th  2018 and will publish a monetary policy statement right after the end of the meeting. The FOMC is widely expected to approve a 25-basis point increase that will take the target range for its benchmark rate from 2% to 2.25%.

The CME’s (Chicago Mercantile Exchange & Chicago Board of Trade) FedWatch Tool which market analysts take into consideration when the Fed’s decisions on interest rates are imminent gave, on Monday September 24th 2018, 93.8% chances for a 0.25% rate hike. According to the CME’s FedWatch Tool, there was a 6.2% probability for the Fed to lift its benchmark interest rate to 2.50%. If the forecast is confirmed this will be the third time that the FOMC announces a rate hike this year.

With a benchmark interest rate hike highly likely in the September 2018 meeting, the number of hikes in the current monetary tightening cycle will reach seven. The Fed began pushing borrowing costs higher at the end of 2015, following seven years of ultra-low interest rates as a result of the financial crisis that erupted in 2008. 
Some economists believe that tempered increases in Consumer Price Index (CPI) inflation will allow the Fed to raise interest rates gradually. Headline inflation in the US has edged up in recent months, pushed up by higher fuel prices but the core CPI inflation which is closely monitored by the Fed’s board has advanced modestly. 

ING forecasts December 2018 rate hike

In a report published on Monday September 24th 2018, ING analysts suggested that the FOMC will proceed in raising borrowing costs by 0.25% on Wednesday’s meeting. “Growth is undoubtedly very strong, with high-frequency indicators suggesting activity likely accelerated in 3Q18 after the economy expanded at an already stellar 4.2% annualised rate in 2Q18. At the same time, all of the major inflation measures are at or above the Federal Reserve’s 2% target, wages are picking up, the unemployment rate is close to an 18-year low and asset prices continue to rise. All this points to further tightening of policy,” was noted in their report. 

ING’s economists added that “we are also seeing a broadening out of the reasoning for higher interest rates. For example, Boston Fed President Eric Rosengren has repeatedly warned that monetary policy should be tightened from a financial stability perspective. He and others worry that unduly low borrowing costs could be the trigger for excessive risk-taking, which will store up trouble for the US economy in the future. For that reason, we expect a rate hike this week and another in December. But markets will be watching closely for hints about the Fed's plans for 2019.”

STO and trading the US Dollar

The US Dollar against the Euro, the US Dollar against the British Pound and the US Dollar against the Japanese Yen are just three of the major currency pairs that you can trade with on the STO platform. STO provides its clients with all the necessary educational material such as webinars to help them with preparing a suitable trading strategy. 

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.52% of retail investor accounts lose money when trading CFDs with AFX Capital Markets Ltd. 64.84 % of retail investor accounts lose money when trading CFDs with AFX Markets Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information about the key risks associated with CFDs, please refer to our full Risk Disclosure.
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24 / 09 / 2018 | Technical Analysis

Technical Analysis 24.09.2018 – EUR/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is the upper border of the cloud (132.11). The closest resistance level is Tenkan-sen line (132.52).




On the daily chart Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (131.35). The closest resistance level is Tenkan-sen line (132.50).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
 
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21 / 09 / 2018 | Technical Analysis

Technical Analysis 21.09.2018 – AUD/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (81.80). One of the previous maximums of Chikou Span line is expected to be a resistance level (82.50).




On the daily chart Tenkan-sen line is above Kijun-sen, both lines are directed upwards. Confirmative line Chikou Span is above the price chart, current cloud is descending. The instrument has broken through the cloud and is still rising. The closest support level is the upper border of the cloud (82.10). One of the previous maximums of Chikou Span line is expected to be a resistance level (82.60).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
 
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20 / 09 / 2018 | Technical Analysis

Technical Analysis 20.09.2018 – EUR/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (130.84). The closest resistance level is Tenkan-sen line (131.22).




On the daily chart Tenkan-sen line is above Kijun-sen, the blue line is directed upwards, while the red one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (130.08). One of the previous maximums of Chikou Span line is expected to be a resistance level (131.71).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.

 
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19 / 09 / 2018 | Technical Analysis

Technical Analysis 19.09.2018 – AUD/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, both lines are directed downwards. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (81.02). One of the previous maximums of Chikou Span line is expected to be a resistance level (81.42).



On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span has crossed the price chart from below, current cloud is descending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (80.91). The closest resistance level is the lower border of the cloud (81.30).



The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
...
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19 / 09 / 2018 | Market News

BoJ keeps rates on hold, UK CPI rises in August 2018

This week is one of those that keep investors and traders’ attention at the top level. As September is already reaching its end, the global markets are already warming up after the brief summer interruption. Last week, the European Central Bank (ECB) and the Bank of England (BoE) decided to keep their interest rates unchanged, a set of decisions that didn't surprise the experienced analysts. 

BoJ keeps interest rates unchanged

On Wednesday September 19th 2018 the Bank of Japan’s (BoJ) governing board convened to decide on interest rates. The BoJ’s policymakers announced that they would keep borrowing costs unchanged at -0.1%. The decision was widely anticipated by analysts. A report by Danske Bank published right after the meeting noted that “the BoJ also maintained its forward guidance and left its asset purchases unchanged. The BoJ has clearly shifted to autopilot mode after it announced some policy tweaks at the July meeting, and an unchanged signal from the BoJ today was fully expected. Hence, no reaction in the US Dollar/Japanese Yen rate or the Japanese fixed income market.” In their report, the Danske Bank’s economists stressed that they expect the BoJ to keep its current monetary policy intact until the end of 2019 at least. 

On Tuesday September 18th 2018, the Japanese Finance Minister Taro Aso made some comments regarding the BoJ’s meeting. Taro Aso, speaking on Reuters, said that the BoJ is authorized to decide on monetary policy matters and that he believes that the central bank’s target is to pursue the appropriate policy to achieve price stability. 
Japan’s Finance Minister continued his comments on Reuters noting that he is fully aware that the BoJ’s 2% Consumer Price Index (CPI) inflation will take a long time to achieve. Taro Aso mentioned that any debate on BoJ’s exit strategy would probably cause market confusion which he would prefer to be avoided. Aso also urged the United States (US) and China to continue negotiations regarding trade tariffs to prevent the fallout on other countries.   
   
The Reuters media agency published the results of a poll conducted earlier in the week. The survey was associated with the BoJ’s monetary policy. The majority of economists polled said that the BoJ is unlikely to unwind the massive stimulus until 2020 or later. The poll showed that most of them expect the BOJ to scale back on stimulus measures, not add to them. The economists’ forecast showed that the core CPI inflation is likely to remain the same for the following fiscal year (until March 2020). They also stressed that the expected sales tax hike would likely hurt the economy and would push Japan’s Gross Domestic Product (GDP) lower. 

UK Consumer Price Index inflation

On Wednesday September 19th 2018, the Office for National Statistics (ONS) published its August 2018 CPI inflation report. The report showed that the UK’s CPI inflation rose to 2.7%, on an annualised basis, from the 2.5% figure recorded in July 2018. On a monthly basis, the UK’s headline inflation ticked higher to 0.7%, 0.2% more than in July 2018. According to the ONS services, the core CPI inflation also jumped to 2.1% in August 2018 on a year-to-year basis from 1.8% in July 2018. 

The ONS accompanying report said that the rising transport, clothing and recreational goods prices drove the cost of living higher in August 2018 as the UK’s CPI inflation hit its highest level in the last six months. Right after the ONS CPI inflation report was published, the British Pound jumped to an eight-week high against the US Dollar as traders calculated that higher inflation would press the Bank of England (BoE) to raise borrowing costs earlier than previously thought. 

Trade the Japanese Yen and the British Pound on STO

STO offers traders the opportunity to choose from a selection of over 30 currency pairs for a bespoke trading experience. STO clients can trade major, minor and exotic currency pairs with spreads starting from 0.0 pips. STO offers a daily comprehensive fundamental and technical analysis which could help traders build their trading strategy.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.52% of retail investor accounts lose money when trading CFDs with AFX Capital Markets Ltd. 64.84 % of retail investor accounts lose money when trading CFDs with AFX Markets Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information about the key risks associated with CFDs, please refer to our full Risk Disclosure.
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18 / 09 / 2018 | Technical Analysis

Technical Analysis 18.09.2018 – EUR/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (130.55). One of the previous maximums of Chikou Span line is expected to be a resistance level (131.00).




On the daily chart Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument has broken through the cloud and slowed down its growth. The closest support level is Tenkan-sen line (129.49). One of the previous maximums of Chikou Span line is expected to be a resistance level (131.62).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.

 
...
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17 / 09 / 2018 | Technical Analysis

Technical Analysis 17.09.2018 – AUD/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (79.84). One of the previous maximums of Chikou Span line is expected to be a resistance level (80.76).




On the daily chart Tenkan-sen line is below Kijun-sen, the blue line is directed downwards, while the red one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Tenkan-sen line (79.73). The closest resistance level is Kijun-sen line (80.23).




The Technical Analysis is provided by Claws and Horns (Cyprus) Limited, an independent analytical company. Any views and opinions expressed are explicitly those of the writer. Any information contained in the article, is believed to be reliable, and has not been verified by STO and is not guaranteed to be accurate. References to specific products, are for illustrative purposes only and are not a form of solicitation, recommendation or investment advice. Past performance is not a guarantee of future performance.
...
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Risk Warning: 66.52% of retail investor accounts lose money when trading CFDs with AFX Capital Markets Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your money. For more information about the key risks associated with CFDs, please refer to our full  Risk Disclosure.

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