Investinglive Americas FX news wrap 21 Jul: The USD moves lower to start the new week. | investingLive

The USD moved lower versus all the major currencies to kickstart the new trading week. The dollars decline versus the JPY was the biggest mover with the greenbacks decline of near 1%. The fall came after weekend upper House elections which is all the ruling party loses its majority. PM Ishiiba also signal that he would continue his role.

Focus returns to the BOJ where they may turn more hawkish while the Fed may move the other way. The USDJPY last week moved to a new high for the year at 149.18 before rotating lower. The price today fell back below the rising 100-hour MA (currently at 148.401 and the 200-hour MA at 147.72. Staying below the 200 hour MA at 147.72 in the new trading day will keep the sellers more in control and have traders looking toward the 38.2% retracement of the move up from the July 1 low. That level comes in at 146.704.

Looking at the some of the other currency pairs:

EURUSD: The EURUSD also moved through its 200-hour MA (at 1.1655) and also the 50% of the moved down from the July high at 1.16928. The price is trading above and below that midpoint level heading into the close. The break above the 200-hour MA is more bullish in the short-term. However, the high today did stall just ahead of the high from last week at 1.1721. The high today reached 1.1716.

GBPUSD:The GBPUSD also moved above its 200-hour MA at 1.3466 tilting the bias more to the upside. The high stalled within a swing area between 1.3505 to 1.3514. I spoke to that target level in the earlier post HERE.

USDCHF: The USDCHF moved back below the swing area between 0.7985 to 0.7994 and downside momentum reached to the 100 bar MA on the 4-hour chart at 0.7969, but ran out of steam near that MA and a rising MA on the 4-hour chart (see chart below). Holding those levels did stall the fall, but the aforementioned area up to 0.7994 remains a close resistance target in the new trading day.

USDCHF technicals

Looking at other markets, stocks closed at record levels for the S&P and the Nasdaq. The Dow and the small cap Russell 2000 did not fair as well with declines. All indices closed near lows for the day despite the broader indices gains.

In the US debt market, yields did move lower with the: