The coast is obvious by way of top-tier catalysts right this moment, so I’m taking a look at this straightforward vary play on EUR/JPY.
Will sellers return quickly?
Earlier than transferring on, ICYMI, right this moment’s Asia-London session watchlist checked out AUD/JPY testing its range support ahead of Australian economic updates. You’ll want to take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
Australian commerce stability narrowed from 11.82B AUD to 11.22B AUD
Australia’s retail gross sales rose by one other 4.9% as anticipated
Australia tightens inside borders to curb unfold of Omicron
Japan cancels ban on Japanese nationals returning to the nation
Asian shares tick barely increased however Omicron variant nonetheless a priority
Extra Chinese language builders searching for home bond issuance
OPEC-JMMC conferences ongoing
U.S. Challenger job cuts at 12:30 pm GMT
U.S. preliminary jobless claims at 1:30 pm GMT
U.S. Treasury Secretary Yellen’s speech at 2:00 pm GMT
FOMC members Quarles, Barkin, Bostic, and Daly to present speeches
When you’re not conversant in the foreign exchange market’s fundamental buying and selling periods, take a look at our Forex Market Hours device.
What to Watch: EUR/JPY
Within the absence of main financial releases within the upcoming session, I’m relying on danger aversion to make a comeback quickly!
This pair is bouncing off a short-term support zone on the backside of its vary on the hourly timeframe. Worth is setting its sights on the high quality across the 128.50 minor psychological mark subsequent.
Will euro bears and yen bulls step up proper right here?
Technical indicators are suggesting that resistance is extra prone to maintain than to interrupt. The 100 SMA is under the 200 SMA whereas Stochastic is approaching the overbought zone to sign exhaustion amongst patrons.
EUR/JPY may comply with swimsuit as quickly because the oscillator heads again down to verify a return in bearish stress.
Heck, if sellers are robust sufficient, the vary assist may break and set off a drop that’s the identical peak because the rectangle pattern!
I’d nonetheless keep looking out for remarks from Fed officers within the New York session, as these may affect total sentiment. Other than that, it appears that evidently market jitters over the Omicron variant may keep in play and profit the safe-havens.