A little bit of profit-taking knocked USD/JPY again all the way down to final week’s ranges.
Will USD/JPY lengthen its uptrend in the present day?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out EUR/USD’s Fibonacci retracement ranges for bearish entry alternatives. Remember to try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Contemporary Market Headlines & Financial Knowledge:
New Zealand constructing consents rise by 10.5% in February vs. 8.7% drop in January
UK retailers increase costs by 2.1% in March, the quickest in practically 11 years – BRC
Japan Feb retail gross sales fall by 0.8% in February – the primary decline in 5 months – on Omicron curbs
New Zealand ANZ enterprise confidence improves from -51.8 to -41.9 in March
Swiss KOF main indicator slumps from 105.3 to 99.7 on struggle issues
Germany declares ‘early warning’ for provide emergency because it prepares shift away from Russian fuel
European shares slip as bond markets recommend ache for U.S. economic system
Oil rebounds on tight provide, prospects of latest Russia sanctions
U.S. ADP report at 12:15 pm GMT
U.S. last GDP at 12:30 pm GMT
SNB’s quarterly bulletin at 1:00 pm GMT
U.S. EIA crude oil inventories at 2:30 pm GMT
AU constructing approvals at 12:30 am GMT (Mar. 31)
China’s manufacturing and non-manufacturing PMIs at 1:30 am GMT (Mar. 31)
Japan’s housing begins at 5:00 am GMT (Mar. 31)
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: USD/JPY
In case you weren’t watching USD/JPY’s charts, you must know that USD has been weakening in opposition to JPY for the reason that begin of the week.
Heck, JPY has been strengthening throughout the board previously few days!
One motive might be skepticism across the Russia-Ukraine peace talks and issues over China’s COVID-related lockdowns.
Or it might be that the Japanese are repatriating their JPY close to the top of Japan’s fiscal yr.
In any case, USD/JPY is now hanging out at 121.50, which was a key inflection level final week. Not solely that, nevertheless it’s additionally close to the 61.8% Fibonacci retracement of the final large upswing and the 200 SMA on the 1-hour time-frame!
Bulls who’re betting on USD/JPY going again to its uptrend can purchase at present ranges or put lengthy orders on the first indicators of bullish momentum.
Uncle Sam is printing its ADP report later in the present day and if we see a a lot stronger exhibiting than the 455K web employment that markets predict, then USD might head again to its month-to-month highs.
Don’t guess the farm on additional USD/JPY power although!
Germany has simply issued an “early warning” on its fuel provides because it prepares for Russia presumably reducing off its deliveries. China’s official PMIs, due within the Asian session, might additionally weigh on threat sentiment in the event that they miss market expectations.
If we see extra risk-averse market themes, then USD/JPY might lengthen its intraweek downswing and break its uptrend on the 1-hour time-frame.