This pair is hanging out at the top of its range, still deciding whether to bounce or make a break.
Where could the upcoming catalysts take EUR/JPY?
You gotta know all about what happened in the previous sessions if you’re planning on catching pips in the next few hours, though!
- Philly Fed index fell from 26.3 to 11.1 vs. 20.1 forecast
- U.S. initial jobless claims at 885K vs. 817K forecast
- Oil retreats as another wave of COVID-19 cases reported
- Japanese national core CPI down 0.9% as expected
- New Zealand ANZ business confidence index up from -6.9 to +9.4
- U.K. GfK consumer confidence index up from -33 to -26
- BOJ kept interest rates on hold at -0.10% as expected
- BOJ announced extension of funding package to March 2021
- BOJ also unveiled plan to better achieve inflation targets
Upcoming Potential Catalysts on the Economic Calendar:
- BOJ press conference coming up
- U.K. retail sales at 8:00 am GMT
- German Ifo business climate index at 10:00 am GMT
What to Watch: EUR/JPY
Remember that EUR/JPY range we were looking at the other day?
Well, the pair made it back up to the range resistance since then and might now be due for another bounce.
However, yen weakness has been in play as the BOJ announced an extension of their funding program and a revamped plan to hit their inflation targets.If yen bears still have enough energy left in the upcoming session, they could push past the top of the range and go for a climb that’s at least the same height as the rectangle pattern.
A slight dip in the German Ifo business climate index is also expected, but a stronger than expected result could allow the shared currency to rally.
A return in risk-off flows or end-of-the-week profit-taking, on the other hand, could lead to a move back to support.