Late U.S. Session Forex Preview-Kuroda Speaks, USD/JPY In Focus
Shain Vernier • 2 min read
Serenity has been the overriding theme in the forex market today. Limited participation across the majors has created subdued trading ranges, as well as horizontal price action in the indices and commodity markets. Today’s primary event has been the Bank of Japan (BOJ) Chair Kuroda’s comments.
Thus far nothing earth-shattering is hitting the wires from Kuroda’s speech. Here are a few of the highlights:
The Japanese economy is “no longer in deflation.”
There is a “long way to go” before reaching the 2% target for inflation.
BOJ’s efforts regarding quantitative easing have been going in the “right direction.”
The USD/JPY took Kuroda’s comments in stride, failing to extend the session's range of 47 pips.
USD/JPY, Daily Chart
There is not much new to report on the USD/JPY. The last 3 weeks have produced sideways trading conditions involving the post-snap election GAP. As with several other majors, the USD/JPY is trapped in rotation.
It may take time, but eventually we will see some movement in the USD/JPY. The current technical roadmap on the daily timeframe is showing valid resistance at the May/July double top. In addition, support is present at today’s low of 113.24.
A live trading signal is in play facing the USD/JPY. Be sure to head over to the signals page for a detailed plan on how to capitalise on the setup.
The relative calm of the early week is soon to be tested. In the coming hours, there are a number of key events that may potentially shake up the markets:
China Foreign Direct Investment (YoY, Oct.)
China Industrial Production (YoY, Oct.)
Germany Gross Domestic Product (Q3)
European Union Harmonised Index of Consumer Prices (YoY, Oct.)
United Kingdom Consumer Price Index (YoY, Oct.)
United Kingdom Producer Price Index (YoY, Oct.)
European Union Gross Domestic Product (QoQ, Q3)
Be sure to check in with Rowan, Arslan, and Skerdian during the U.S. overnight and pre-session hours. They will have trade ideas, signals, and up-to-the-minute analysis facing these key market fundamentals.
Until then, trade smart and for tomorrow!