What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
How Can a New Head of BOJ Affect Yen?
Information is not investment advice
There are rumors from influential sources pointing at Kazuo Ueda as the next governor of the Bank of Japan (BOJ). This decision could lead to the commencement of policies in favor of raising interest rates and monetary policy tightening. Seeing how his appointment is coming after the Yen has lost ground against the Dollar and other top economies, it is only natural to expect a yen recovery. However, let's check the technical factors for confirmation of this prediction to see if the stars align.
USDJPY
The horizontal arrow marks the previous low that was recently broken. At the same time, the rectangle highlights the order block (supply zone) responsible for the breakout. The 100 and 200-day moving averages align with the supply zone, increasing the chance for a bearish reaction from that area. The 88% of the Fibonacci retracement tool can be considered an added confluence in favor of the bearish move.
Analysts’ Expectations:
Direction: Bearish
Target: 131.5
Invalidation: 138.2
EURJPY
The two trendlines slightly inching towards each other have formed a wedge pattern on the daily timeframe of the EURJPY chart. Based on the fact that the most recent break of the structure was bearish, the supply zone responsible has been highlighted. It is also worthy of note that the supply zone falls within 76% of the Fibonacci retracement zone and aligns with a trendline resistance. These factors lead to a convincing bearish sentiment.
Analysts’ Expectations:
Direction: Bearish
Target: 141.5
Invalidation: 146.5
CADJPY
CADJPY is poised for a bearish rejection a short while from now. The clause here is that price has presented us with two possible supply areas. The first supply zone aligns with the trendline resistance, while the other has the 100 and 200-day moving averages as confluences for the supply zone. While either scenario can play out, I'd rather err on the side of caution by choosing the second supply zone since it has a slightly better chance.
Analysts’ Expectations:
Direction: Bearish
Target: 103.56
Invalidation: 97
CHFJPY
CHFJPY has the cleanest setup in this article. Here we see the descending channel with confluences from the 100-day moving average, trendline resistance, supply zone, and the 76% Fibonacci retracement level. The sentiment here is bearish.
Analysts’ Expectations:
Direction: Bearish
Target: 139.5
Invalidation: 148
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
Similar
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
