Yen and Euro Test Strategic Levels
The downward correction of the US currency, which began after the postponement of the tariffs announced by Trump, continues to gain momentum. The EUR/USD currency pair is trying to consolidate above 1.0400, sellers of USD/JPY have managed to test 152.00, and the GBP/USD pair is preparing for a possible breakthrough of the December 2024 extremes at 1.25701.2540.
EUR/USD
The closure of the "gap" (price break) on Monday allowed EUR/USD buyers to form a "bullish marubozu" on the daily timeframe. Literally the day after the combination was formed, the pair continued to rise and managed to consolidate above the key resistance level of 1.0400. The upcoming trading sessions are crucial for determining the further direction of EUR/USD. If the price moves above 1.04701.0440, we may see a continuation of the upward retracement, with the primary target being the 1.06001.0540 range. In the event of the price consolidating below 1.0300, a retest of recent extremes at 1.0200 is possible.
In the upcoming trading sessions, the following events may influence EUR/USD price action:
- Today at 11:30 (GMT+2): Global Purchasing Managers' Index for the Eurozone's construction sector from IHS S&P
- Today at 13:00 (GMT+2): Retail sales volume in the Eurozone
- Today at 20:00 (GMT+2): Speech by B. Balz from the Bundesbank
USD/JPY
On Monday, USD/JPY sellers managed to break through the lower boundary of the 156.00154.00 range, in which the price had been trading for over a week. The nearest levels where the pair may find support are at 151.80151.20. The scenario of a downward correction will be invalidated if the price firmly consolidates above 154.00.
In the upcoming trading sessions, the following events may influence USD/JPY price action:
- Today at 16:30 (GMT+2): Initial jobless claims in the US
- Today at 16:30 (GMT+2): US labour costs
- Today at 22:30 (GMT+2): Speech by C. Waller from the Federal Reserve
- Tomorrow at 08:00 (GMT+2): Leading Economic Index for Japan
Read more: https://fxopen.com/blog/en/ru-yen-and-euro-test-strategic-levels/
Text source: Forex Trading Blog
