Japanese Yen Retreats After Elections: Analysis For USD/JPY, EUR/USD, AUD/USD, NZD/USD

USD/JPY Tests New Highs

USD/JPY tests new highs as traders react to the results of Japanese elections. The results showed that no party had a strong majority. The parties have 30 days to form a ruling coalition. Political uncertainty served as a bearish catalyst for the Japanese yen. In addition, Treasury yields moved higher at the start of the week, providing support to the U.S. dollar.

Currently, USD/JPY is trying to settle above the resistance at 153.00 – 153.50. In case this attempt is successful, USD/JPY will move towards the next resistance level, which is located in the 155.00 – 155.50 range.

EUR/USD Tries To Rebound At The Start Of The Week

EUR/USD received support near the 1.0765 – 1.0780 level and is trying to gain additional upside momentum. There are no important economic reports scheduled to be released in Europe today, so traders will stay focused on general market sentiment.

If EUR/USD manages to settle back above the 1.0800 level, it will move towards the 50 MA at 1.0826. A move above the 50 MA will open the way to the test of the resistance at 1.0900 – 1.0915.

AUD/USD Tested New Lows Amid Pullback In Commodity Markets

AUD/USD tested new lows as traders reacted to the strong pullback in the oil markets. Israel’s strikes on Iran were limited and did not target Iran’s oil infrastructure, which was bearish for oil prices.

If AUD/USD climbs back above the resistance at 0.6610 – 0.6620, it will move towards the next resistance level, which is located in the 0.6675 – 0.6685 range.

NZD/USD Moved Lower As Demand For Commodity-Related Currencies Declined

NZD/USD has also tested new lows as traders reacted to the developments in commodity markets.

In case NZD/USD stays below the support at 0.5975 – 0.5985, it will move towards the next support level at 0.5920 – 0.5930.

For a look at all of today’s economic events, check out our economic calendar.