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US markets are closed for Memorial Day today, so will there be enough volatility to spur a breakout for this pair?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Shanghai released 50-item plan to revive city’s economy

RBNZ official Conway: Lower domestic inflation likely in second half of 2022

Beijing and Shanghai slowly easing pandemic restrictions

German import prices rose by 1.8% vs. 2.1% forecast in April

Swiss KOF economic barometer down from 101.7 to 96.8 vs. 102.6 forecast

Spanish flash CPI jumped from 8.3% to 8.7% y/y vs. 8.4% forecast

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. markets closed for Memorial Day holiday
FOMC member Waller’s speech at 3:00 pm GMT
New Zealand building consents at 10:45 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: USD/JPY

USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

This pair is still cruising below a falling trend line that’s been holding since the beginning of May. Another test of resistance is happening, but will it break out this time?

USD/JPY also happens to have formed higher lows and lower highs, creating a short-term symmetrical triangle pattern just below the trend line.

A break above the resistance around the 127.00 handle would also mean a bullish breakout from the trend and a potential reversal. On the other hand, a break below support would confirm a continuation of the slide.

Technical indicators seem to be favoring the latter scenario, as the 100 SMA is below the 200 SMA while Stochastic is already moving south.

Will there be enough catalysts to spur a big move, though?

Note that U.S. markets are closed for the Memorial Day holiday today, so liquidity might be lower than usual.

Either that or traders could wait for the release of Japan’s industrial production and retail sales numbers in the next trading session!