Twitter Shares on Focus Today; Buy the USDJPY
USDJPY Profit-Taking at 120.00 | Further Buying Momentum
USDJPY is closing in on the 120.00 major psychological handle, which might be a key area for profit-taking orders. This could lead to a sharp near-term selloff for the pair, as traders ease off their long dollar holdings ahead of the Friday non-farm payrolls release.
he report is slated to show a 232K pickup in hiring, stronger compared to the previous 214K gain and enough to keep the jobless rate steady at 5.8%. A stronger than expected report might lead to USDJPY gains past the 120.00 mark onto 121.00 while a weak figure could force the pair to return more of its recent wins.
A selloff could last until the 117.75 area of interest, which is around the top of the descending triangle resistance seen last month. A deeper pullback could take price down to the 115.00 mark, although this appears to be a less likely scenario
Bear in mind that the US Fed remains on track to tighten policy next year, as the Beige Book indicated that strong improvements were seen among most Fed districts. Meanwhile, the BOJ is still open to further easing measures even after expanding its monetary base a few weeks back.
GBPNZD Retracement Levels | Resistance at 2.0300
GBPNZD made a higher pullback as seen on its 4-hour time frame, although the longer-term downtrend seems to be intact. Price brushed past the 2.0000 major psychological resistance and 38.2% Fib and might be on its way to test the 2.0300 mark around the 50% Fibonacci retracement level.
Stochastic has already reached the overbought area, indicating that a return in selling pressure is likely to take place. If so, the 2.0300 resistance might hold as a ceiling and push price back down to 2.0000 or lower. A pickup in bearish pressure could lead to a move back to the previous lows around the 1.9700 major psychological support.
Data from the UK was stronger than expected yesterday, as the services PMI showed a higher climb and a faster pace of expansion in the services industry, which contributes a huge chunk to overall GDP. In New Zealand, the latest dairy auction indicated another drop in prices, which might weigh on economic performance.
Event risks for this setup today include the BOE interest rate statement, which might contain more dovish remarks from the UK central bank and put the pound back in selloff mode. Recall that the latest testimonies from Carney showed that rate hike expectations are likely to be pushed back because of weak inflation.
Twitter Shares at Range Support | Potential Price Bounce to $44.00/share
Twitter shares are moving sideways as it found support around the $39/share level and resistance at the $44/share mark. At the moment, price is testing range support and may be due for a short-term bounce.
Much hinges on market sentiment, as this could be swayed by the outcome of the non-farm payrolls release on Friday. Early indicators suggested a stronger than expected result since the ISM manufacturing and non-manufacturing PMI labor components marked improvements.
A strong NFP reading could boost US equities, which include Twitter shares. This might even lead to a move past the $44/share resistance and for the stock to close the huge gap down from the $48/share level last month.
On the other hand, a weak NFP report could lead to a risk-off environment and a selloff for US equities, as this might indicate that the economy is still a long way from completely recovering and enjoying tighter monetary policy. In this case, Twitter shares could break below $39/share and see more losses until the $35/share leve