This pair recently fell through a rising trend line support and might be poised for a retest.
Will Fed head Powell take it there?
Before moving on, ICYMI, today’s Asia-London session watchlist looked at a simple consolidation setup on GBP/JPY. 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:
Australian building approvals slumped 12.9% vs. projected 1.4% dip
Australia’s current account surplus grew from 22.9B AUD to 23.9B AUD
Australian private sector credit rose 0.5% vs. 0.6% forecast
Chinese official manufacturing PMI up from 49.2 to 50.1
Chinese official non-manufacturing PMI dipped from 52.4 to 52.3
Asian markets rebound from virus-led selloff
Japanese factory output rose for the first time in four months
Upcoming Potential Catalysts on the Forex Economic Calendar:
Canadian monthly GDP at 1:30 pm GMT
Chicago PMI at 2:45 pm GMT
Fed head Powell’s speech at 3:00 pm GMT
U.S. CB consumer confidence index at 3:00 pm GMT
U.S. Treasury Secretary Yellen’s speech at 3:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: USD/JPY
Watch out for a retest, fellas!
USD/JPY seems to be pulling up to the broken trend line support around the 50% to 61.8% Fib levels.
Will dollar bears return at the area of interest?Technical indicators are pointing to a looming selloff, as a bearish moving average crossover is taking place.
These dynamic resistance levels also line up with the former trend line to add to its strength as a ceiling.
In addition, Stochastic is already heading south after reaching the overbought zone, suggesting that selling pressure is picking up.
If that’s the case, USD/JPY could slump back to the swing low at the 113.00 major psychological mark or lower.
If you’re trading this one, don’t forget to keep tabs on speeches by Fed head Powell and U.S. Treasury Secretary Yellen later today. After all, these top officials would likely have some remarks on the newly-detected Omicron variant and how it might impact monetary and fiscal policy.