USD/JPY Upbeat at the Start of European Trading
USD/JPY – H4
The pair comes from a five-week profitable run amidst hawkish Fed and aggressive rate hike expectations by the markets, culminating to five-year highs last Tuesday.
After that however, bears pushed it lower and this has created risk for a test of 115.00-114.89, but the downside seems well protected and a strong catalyst will likely be required for a breach of the EMA100 and the broader 114.60-32 area, that will halt the upward aspirations.
Despite the recent slide, the correction is rather shallow so far and the US Dollar remains in control. Today the mood is upbeat and it this gives it the opportunity to try for fresh weekly highs (115.85), but it does not seem ready at this point for new multi-year ones (116.35).
Markets will seek fresh impetus at Mr Powell's appearance at the Senate for his nomination hearing.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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