There are no major reports due from Uncle Sam today, so I’m just gonna look at this simple trend line bounce on a yen pair.
Think risk sentiment will favor another bullish move?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar:
- Eurozone and German ZEW economic sentiment index at 9:00 am GMT
- New Zealand GDT auction coming up
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: EUR/JPY
This pair is sitting right on its rising trend line on the 1-hour time frame, still deciding whether to make a bounce or a break.
Price is consolidating above the 38.2% Fib while waiting for traders to make up their minds, but it looks like technical indicators are hinting at more gains.
The 100 SMA is above the 200 SMA to suggest that support levels are more likely to hold than to break, possibly sending EUR/JPY back up to the swing high at 130.75 or higher.
The dynamic support at the 100 SMA also seems to be keeping losses in check, too.
Stochastic is also on the move up but closing in on the overbought zone to signal exhaustion among buyers. Turning lower would mean that sellers are about to take over, so watch out!
Germany and the entire euro region are still due to print the results of the ZEW economic sentiment survey, which could be a short-term catalyst for the shared currency.
Other than that, good ol’ risk sentiment could push this yen pair around, along with expectations for the ECB decision later in the week.