Let’s All Thank Draghi for Another 100+ Pips Signal
Skerdian Meta • 2 min read
As we mentioned in the previous market update, the ECB meeting wasn´t going to change or move anything today, but the Draghster worked his magic once again on the financial markets.
He disregarded the recent inflation pickup in the Eurozone as fuel driven. He´s partially right because is not only the higher petrol prices which have affected global inflation, the global economy has improved immensely in the last month or so.
There wasn´t much room for him to manoeuvre this time, but he knows how to work the markets and he has done it again. If inflation drops in the coming months, he has his bum covered and he´ll say I told you so. If not, then the ECB will take credit for the steps they have taken regarding the monetary policy.
Once again, the Euro has returned back down after Draghi´s words, but the Japanese Yen has suffered even more from this. It shot another 100 pips higher after the ECB president finished his speech and we just closed our long term USD/JPY signal for more than 100 pips.
Of course, there is more room to the upside, but the last pullback which has taken place in the last few weeks was too vicious, which sort of scared me.
Now I´m looking to open another buy forex signal lower. Perhaps, the 114.40 would be a good spot since it has kept the price above all day today.
But, we´ll judge the price as it goes. We´ll see how it will behave around these levels, if it does get there and if we like the odds then we might open another signal, otherwise we´ll wait further for an even better price, probably 113 or 112.50-60 which was the low yesterday.