The yen rained pips earlier today.
Can a short-term rebound keep USD/JPY from breaking a support level?
Before we continue, yesterday’s watchlist from ICYMI looked at key GBP/AUD support level after Australia released its December jobs report. Be sure to check if it’s still a valid trade!
And now for the headlines that have rocked the markets in recent trading sessions:
Fresh headlines and economic data:
Philadelphia Federal Reserve manufacturing conditions rose 8 points to 23.2 in January.
US initial jobless claims rise to 286k from 227k versus 227k expected
US existing home sales broke a three-month winning streak with a 4.6% decline in December.
US crude inventories rose 515,000 barrels last week, the first since November.
Russia’s central bank proposes to ban crypto mining and trading
Business NZ manufacturing index improves to 53.7 from 50.6 in December.
Fuel costs and a weak yen push Japan’s annualized core consumer prices up 0.5% in December
UK consumer confidence falls to -19 from -15 on inflation and interest rate concerns
UK retail sales fell 3.7% in December (-0.6% expected) after November shopping spree and concerns over Omicron variants
ECB President Lagarde speaks on “Global Economic Outlook” at 12:30 GMT.
Canada’s retail sales reports at 13:30 GMT
Eurozone Consumer Confidence at 15:00 GMT
US Treasury Secretary Yellen speaks at the World Economic Forum at 16:30 GMT
Use our new Currency Heatmap to quickly get a visual overview of Forex market price movements!
Something to see: USD/JPY
If you traded in the Asian session, you know that traders have been tracking Wall Street’s (weak) performance as they priced in disappointing earnings reports and concerns about the pace of the Fed’s tapering/tightening plan.
USD/JPY also saw some yen buying today but the bulls held it together around the 113.65 area. And why not? Japan’s yields weren’t that hot either.
Watch for bullish momentum now as USD/JPY has bounced off an inflection point that has kept bulls and bears busy since December.
Bulls who believe the dollar can recoup some of its weekly losses can target the 114.40 – 114.50 zone near the 100 and 200 SMAs and trendline resistance in January.
However, don’t discount more dollar sales. Plenty of traders can build their USD exposure ahead of next week’s FOMC meeting.
If you see USD/JPY turning lower then be ready for a trip back to the 113.65 triangle support or even the former 113.25 area of interest.