FXOpen
Weaker-than-expected US Consumer Price Index (CPI) data released yesterday triggered a downward correction in the US dollar. The USD/JPY pair lost more than 150 points in just a couple of hours, USD sellers in USD/CAD managed to push the price below 1.4400, and European currencies partially recovered earlier-formed reversal patterns for buying.
USD/JPY
On the daily timeframe, the USD/JPY pair has broken out of a three-week consolidation range of 158.40–156.20. If sellers manage to secure the price below the lower boundary of this range, further downward movement towards 154.50–154.00 is possible. A resumption of the upward trend may occur if the price returns above 156.20.
Events likely to influence USD/JPY pricing include:
- 16:30 (GMT+2): US Core Retail Sales Index
- 16:30 (GMT+2): Initial Jobless Claims in the US
- 16:30 (GMT+2): Philadelphia Fed Manufacturing Index (US)
USD/CAD
A retest of the critical resistance level at 1.4450 proved unsuccessful for USD/CAD buyers. The rejection from this level resulted in a 120-point decline, leading the pair back to the 1.4300 zone. Technical analysis of USD/CAD suggests a sideways movement. Currently, the pair could decline to the 1.4300–1.4280 area. If the pair rebounds from this zone, price strengthening towards 1.4450–1.4400 is possible.
Events that may trigger a breakout from the USD/CAD flat range include:
- 16:15 (GMT+2): Canadian Housing Starts
- 20:30 (GMT+2): Speech by Bank of Canada Deputy Governor Gravel
- Tomorrow at 16:30 (GMT+2): Foreign Investment in Canadian Securities
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Silver Price Retreats from 2012 Highs
As shown on the XAG/USD chart, the price of silver climbed above $37 per ounce yesterday — a level not seen since 2012. However, this morning, the price has dropped by approximately 2.5% from yesterday’s peak.
The bullish
Coinbase (COIN) Shares Rise Following Stablecoin Legislation Approval
Shares in Coinbase Global (COIN) surged by 11% yesterday, making the company the top performer in the S&P 500 index (US SPX 500 mini on FXOpen).
The sharp rise was driven by news that the US Senate has
GBP and CHF Extend Decline Following Fed Meeting, Market Focus Shifts to Bank of England and Swiss National Bank Decisions
The British pound and the Swiss franc remain under pressure against the US dollar following the Federal Reserve’s latest meeting, where the regulator left its key interest rate unchanged and signalled no rush to shift the course of monetary