EUR/JPY is trading near a short-term range support.
Will the common currency find buyers today?
Before moving on, ICYMI, yesterday’s watchlist looked for opportunities to catch another wave lower for GBP/AUD. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
US CB consumer confidence improved for a second month (103.6 to 108.0) in Sept
US durable goods orders decline by 0.2% in August vs. -0.4% expected
US new home sales unexpectedly surged by 28.8% in Aug after 8.6% dip in July
St. Louis Fed’s Bullard sees more rate hikes ahead as inflation is ‘serious problem’Fed’s Kashkari: Fed ‘united,’ moving at ‘appropriately aggressive’ pace
Fed’s Evans sees interest rates peaking at 4.50-4.75%
Fed Gov. Powell calls for DeFi regulation following ‘significant structural issues’
Saudi Arabia’s Crown Prince Mohammed bin Salman named PM
BRC: UK shop price inflation speeds up again to new high in Sept
BOJ board agreed on need for vigilance on sharp yen moves, easy policy to stay
Apple drops plan to boost iPhone production as demand falters-Bloomberg
Asian markets roiled by recession risk, rampant dollar
France’s consumer confidence down from 82 to 79 in Sept
ECB Pres. Lagarde: ECB must place inflation concerns above growth
Upcoming Potential Catalysts on the Forex Economic Calendar:
US goods trade balance at 12:30 pm GMT
SNB’s quarterly bulletin at 1:00 pm GMT
US pending home sales at 2:00 pm GMT
FOMC member Bullard to give a speech at 2:10 pm GMT
US crude oil inventories at 2:30 pm GMT
NZ ANZ business confidence at 12:00 am GMT (Sept 29)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/JPY
EUR/JPY 1-hour Forex Chart
Growth concerns in the Eurozone and overall risk aversion in the markets have dragged EUR/JPY from its 139.50 weekly highs all the way to 138.10 short-term support.
Can the common currency find buyers today?
Technical traders would love to know that 138.10 lines up with the bottom of a short-term range that lines up with an inflection point that bulls and bears have been minding since late July.
Meanwhile, Stochastic is also flashing an oversold signal that can attract some short-term bulls.Before you buy EUR and aim for its 139.00 highs, though, you should know that European Central Bank (ECB) President Lagarde just came out to say that the central bank will prioritize inflation over growth concerns. Yikes.
Meanwhile, Sweden and Denmark have upped the Eurozone’s energy drama by sharing that the two blasts on two Russia-to-Germany Nord Stream gas pipelines under the Baltic Sea were acts of sabotage.
No finger pointing yet but the gas leaks further reduce the possibility of Russia supplying gas to Germany. Double yikes.
If concerns over the Eurozone’s growth and energy supplies extend the risk averse trading environment, then EUR/JPY could break below its range support and head for previous inflection points like 137.75 or 137.25.
However, if traders mostly focus on the ECB’s future rate hikes, then EUR/JPY could get bumped up to its 138.80 mid-range or 139.50 range resistance levels.
