On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
USD/JPY: Dollar in consolidation
2019-11-11 • Updated
Technical levels: support – 105.80; resistance – 106.20.
- Sell — 105.70; SL — 105.90; TP1 — 105.00; TP2 — 104.50.
Reason: bearish Ichimoku Cloud with horizontal Senkou Span A and B; a new weak golden cross of Tenkan-sen and Kijun-sen, the lines are horizontal; the market is in consolidation near Tenkan-sen and Kijun-sen, but may continue downtrend.
The trend in the scenario above is clearly bearish. We have also had a recent break of structure at the marked horizontal arrows, which means we can expect price to react from the supply zone that broke the structure.
The most prominent technical factor that jumped at me as soon as I saw the chart though was the wedge I marked above.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.