The oil price looks optimistic. What are the reasons?
USD/JPY slides to the 2-weeks low
Bulls could not hold yesterday's gains for USD/JPY. The pair has fallen below the weekly pivot at 111.70 and tested the support at 111.54 (200-day SMA). Strong bearish pressure may break this level and pull the pair lower in the direction of the next weekly pivot support at 111.30. If buyers take over the market, they will try to move USD/JPY up to to the resistance at 112.34. If we look at indicators, parabolic SAR still shows the upward movement for the pair.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.