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The coast is clear in terms of top-tier catalysts today, so I’m looking at this simple range play on EUR/JPY.

Will sellers return soon?

Before moving on, ICYMI, today’s Asia-London session watchlist looked at AUD/JPY testing its range support ahead of Australian economic updates. 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 trade balance narrowed from 11.82B AUD to 11.22B AUD

Australia’s retail sales rose by another 4.9% as expected

Australia tightens internal borders to curb spread of Omicron

Japan cancels ban on Japanese nationals returning to the country

Asian shares tick slightly higher but Omicron variant still a concern

More Chinese developers seeking domestic bond issuance

Upcoming Potential Catalysts on the Forex Economic Calendar:

OPEC-JMMC meetings ongoing
U.S. Challenger job cuts at 12:30 pm GMT
U.S. initial jobless claims at 1:30 pm GMT
U.S. Treasury Secretary Yellen’s speech at 2:00 pm GMT
FOMC members Quarles, Barkin, Bostic, and Daly to give speeches

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: EUR/JPY

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

In the absence of major economic releases in the upcoming session, I’m counting on risk aversion to make a comeback soon!

This pair is bouncing off a short-term support zone at the bottom of its range on the hourly time frame. Price is setting its sights on the top of the range around the 128.50 minor psychological mark next.

Will euro bears and yen bulls step up right here?

Technical indicators are suggesting that resistance is more likely to hold than to break. The 100 SMA is below the 200 SMA while Stochastic is approaching the overbought zone to signal exhaustion among buyers.

EUR/JPY could follow suit as soon as the oscillator heads back down to confirm a return in bearish pressure.

Heck, if sellers are strong enough, the range support might break and set off a drop that’s the same height as the rectangle pattern!

I’d still stay on the lookout for remarks from Fed officials in the New York session, as these might impact overall sentiment. Apart from that, it seems that market jitters over the Omicron variant might stay in play and benefit the safe-havens.