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: the Dollar rose into positive area
2019-11-11 • Updated
Technical levels: support – 106.50, 106.00; resistance – 107.00, 107.50.
- Sell — 107.50; SL — 107.70; TP1 — 106.50; TP2 — 106.00.
- Buy — 106.50/60; SL — 106.30; TP1 — 107.00; TP2 — 107.50.
Reason: bullish Ichimoku Cloud with the narrow channel and horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen; the Bulls got strength and breaking out the Cloud’s resistance.
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.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?