Trading doesn't just reveal your character, it also builds it if you stay in the game long enough.
The shared currency boosted to $1.1833 as investors unwound bets on risky currencies and as concerns over the spread of COVID variants, ECB's Lagarde speech eyed.
The Cable seesawed at $1.3781 amid Brexit, coronavirus fears, focus on UK data dump later today.
The Japanese yen gained to 110.03 versus the greenback despite Japan declared a fresh state of emergency in Tokyo, three weeks before the Olympic Games are due to open in the city, as COVID-19 case numbers continue to rise.
The Aussie dollar whipsawed to $0.7428 on soft prints of China CPI, PPI. China CPI eased to 1.1% YoY, PPI matched 8.8% forecast for June.
The Loonie ticked down to 1.2533 per U.S dollar ahead of Canadian jobs report.
South African rand resilient at 14.30 against the U.S dollar although the spread of the Delta coronavirus variant cast doubts over a global economic recovery.
The dollar-rupee stayed put at 43.35(selling) on the local market.
10:00 - GBP - Manufacturing Production (MoM) (May)
10:00 - GBP - GDP (YoY)
14:00 - EUR - ECB President Lagarde Speaks
16:30 - CAD - Employment Change (Jun)
19:00 - USD - Fed Monetary Policy Report
“ Its not that I am so smart. Its just that I observe the market longer. Patience is key to success.” - Anonymous
Policy statement from the US Federal Reserve certainly helped fuel a spike upwards in the USDJPY which topped exactly in the 110.80-111.00 resistance zone ( Based on our previous forecast on 28.05.21) before trimming most of its post Fed gains. What next?
The Bank of Japan kept its policy unchanged today and held its negative interest rate firm while also holding steady to its quantitative easing program in contrast with the FED. The special COVID program is also extended till March 2022. The lag in economic recovery has put institutions under stress , with BOJ responding that they will announce new loan measures in the near term.
The sudden burst of volatility and uncertainty will continue to prevail in the market in the coming sessions. The forex pair , hovering near critical values of 110.80-111.00, remains a key pivot in the near term. 110.80 marks a complete A-B-C corrections as per Elliott wave principle which coincides also with 100% Fibo Extension. A strong break and close above these levels could signal medium term buying in the USD amid breach of stop losses.
Shorts in USDJPY can be initiated in the region of 110.50-110.80 with a stop above 111 with targets towards 109 and 108 levels.