The EUR/USD pair is making gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the...
BOJ's New Governor Seems Up To The Task
2023-08-02 • Updated
Kazuo Ueda, the Bank of Japan's Governor, effectively adjusted the yield curve control policy, but caution is still needed as inflation remains a challenge. The BoJ expects inflation to hit its target next year, but external inflationary pressures may abate. The government needs clearer fiscal plans supporting worker productivity and innovation to achieve sustained wage growth and meet the 2% inflation target. Fiscal and monetary policy coordination is vital for economic management in Japan, and the Bank of Japan can't achieve this goal alone. A concerted effort between the central bank and the government is necessary for sustainable inflation and economic growth.
USDJPY - D1 Timeframe
USDJPY made a sharp bounce off the trendline support last week. Now it is heading for the rally-base-drop supply zone at the top of the previous price high. In this case, I aim to pursue the price action all the way to the supply zone and then seek selling opportunities from that area.
AUDJPY - D1 Timeframe
AUDJPY has been rejected from the trendline resistance in a move currently stalling around the 50 and 100-period moving averages. Although the market is yet to present a proper break of structure, it is my opinion. However, that price would nonetheless reach for the trendline support since it is closer to the 200-day moving average.
GBPJPY - D1 Timeframe
GBPJPY recently broke out of a consolidation channel and is completing a retest of the same support trendline it had initially broken below. In this case, I expect a reaction from the supply zone, confirming my bearish sentiment. The rejection from that supply zone is the final piece of the puzzle I would be waiting for.
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Canada's forthcoming Consumer Price Index (CPI) data, set for release on Tuesday, is projected to show a year-on-year decline in inflation to 3.2% for October from the previous 3.8%. This potential inflation dip might offer leeway for the Bank of Canada (BoC) to maintain its overnight rate target at 5.0% in the...
Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and...
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.