Instrument: USDJPY
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 109.562 with take profit at 109.643.
Bearish Preference:
Sell position is envisaged if price trades below 109.425 with take profit at 109.324.
Fundamentals:
USD 1:30PM CPI m/m
1:30PM Core CPI m/m
1:30PM Unemployment Claims
Comment: The dollar edged higher in early European trade Thursday, amid cautious trading with traders looking towards key U.S. inflation data and an ECB meeting for clues of future direction.
Higher inflation levels would need a response from the US Federal Reserve, that is, pull out some of the massive stimulus meant to support the economy. Stocks will suffer the most, while US Treasury yields would likely jump higher alongside the dollar. At the same time, the European Central Bank will announce its monetary policy. Should it maintain a cautious stance, it will highlight the imbalances between the Fed and its counterparts, exacerbating the market’s reaction to the news.
Analysis: SCRUM Team
