With BOJ head Kuroda reaffirming their ultra-easy coverage stance, will the yen be in for extra losses?
Right here’s a possible uptrend play on EUR/JPY.
Earlier than shifting on, ICYMI, I’ve listed the potential financial catalysts that it’s worthwhile to be careful for this week. Verify them out earlier than you place your first trades at this time!
And now for the headlines that rocked the markets within the final buying and selling classes:
Contemporary Market Headlines & Financial Knowledge:
Chinese language headline CPI up from 2.1% to 2.5% as anticipated
Chinese language producer costs dipped from 6.4% to six.0% y/y
Japanese higher home elections led to extend in seats for governing LDP social gathering
Japanese core equipment orders sank by 5.6% vs. projected 5.3% decline
Japan’s preliminary machine software orders slowed from 23.7% to 17.1% y/y
BOJ head Kuroda: BOJ to take care of ultra-loose financial coverage
Macau shut down most companies and casinos for the week on COVID-19 circumstances
New COVID-19 variant detected in Shanghai, lockdown fears renewed
French officers: Whole cutoff from Russian gasoline is almost certainly
BOE Governor Bailey’s speech at 2:15 pm GMT
FOMC member William’s speech at 6:00 pm GMT
New Zealand customer arrivals information at 10:45 pm GMT
Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: EUR/JPY
EUR/JPY 1-hour Foreign exchange Chart
There’s not a lot in the best way of top-tier stories to commerce later at this time, so I’m simply this easy reversal sample enjoying out on EUR/JPY.
The pair already busted via the neckline of its double backside on the hourly timeframe, indicating {that a} rally is within the works. Worth appears to be retesting the damaged resistance round 138.50 earlier than heading any increased.
Can it maintain the climb?
Issues ain’t lookin’ too good for the Japanese yen to this point, as BOJ Governor Kuroda simply reaffirmed their plans to stay to an ultra-loose financial coverage.
To high it off, information from the nation additionally highlighted weak spots, with the core equipment orders printing a bigger than anticipated hunch and preliminary machine software orders slowing considerably.
With that, traders won’t present a lot love for the yen, particularly since different main economies are dealing with the prospect of upper rates of interest.
Technical indicators are pointing to a continuation of the EUR/JPY slide, although, because the 100 SMA is under the 200 SMA whereas Stochastic is beginning its descent.
I’d in all probability maintain out for the oscillator reaching the oversold area earlier than hopping in a protracted play!
