Dollar Range Trading Awaits Trump's Directives
FXOpen
Following Donald Trump's inauguration, the dollar lost part of this month’s gains on Monday and adjusted to significant support levels. However, there is no clear development of a full-scale downward correction as yet. Most currency pairs remain within their previous sideways corridors, awaiting new directives from the newly inaugurated president.
USD/JPY
The USD/JPY currency pair has once again tested the important range of 155.00–154.80. The inability of sellers to hold the price below 155.00 for two weeks could lead to another test of recent highs in the 157.00–157.80 zone.
Technical analysis of USD/JPY indicates a sideways movement of the pair. At present, the price is at the upper boundary of a five-day corridor. If it rebounds from the 156.70 level, a decline towards the 155.20–155.00 marks is possible.
A consolidation above 157.00 could result in an update of the year’s maximum at 158.90.
Key events influencing USD/JPY movements:
- Today at 16:30 (GMT+2): Initial Jobless Claims in the United States.
- Today at 19:00 (GMT+2): Speech by US President Donald Trump.
- Tomorrow at 05:30 (GMT+2): Bank of Japan’s Monetary Policy Report.
- Tomorrow at 06:00 (GMT+2): Bank of Japan Interest Rate Decision.
USD/CAD
Range trading with false boundary breakouts is also observed in the USD/CAD pair. On Monday, the price updated its January low at 1.4280 but failed to develop a full-fledged downward correction and consolidate below this level. In the upcoming trading sessions, another approach to the 1.4420–1.4450 range is possible.
The nature of the price exit from the four-week range of 1.4300–1.4500 could provide more clues about the medium-term movement of USD/CAD.
Key events influencing USD/CAD pricing today:
- Today at 16:30 (GMT+2): Retail Sales Volume in Canada.
- Today at 16:30 (GMT+2): US Crude Oil Inventories.
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