Forex Technical Analysis

The Risk ON mode present on the market throughout this week is apparent particularly in two areas. The first one is an impressive rally on stocks and the second one is the striking weakness of the Japanese Yen. Today, we will focus on the second aspect; and the pair of our choice is the EURJPY.

The show must go on. Despite the turmoil in the banking sector, indices are climbing higher. In today’s technical piece, we have DAX which, as a German index, was very close to the havoc in the banking industry. The Deutsche Bank was predicted to be the next SVB or Credit Suisse by many. Actually, the negative aura around the DB has been present for years, but it was just renewed once the other banks started to report problems. Nevertheless, the DB is gone from the headlines and DAX is surging higher.

A nice and clean technical setup can currently be spotted on USD/JPY, which has been one of the strongest currency pairs on the market since the start of trading on Wednesday. USD/JPY is currently reversing the negative sentiment and doing so with very handsome technical moves.

This week has been a rollercoaster ride for most instruments, including commodities. While gold took the spotlight with an upswing above $2000 per ounce, interesting things were also happening in oil - not as spectacular, but definitely crucial and technical. In this analysis, our focus is on WTI oil.

In the technical part today, we shall take a look at the long-term situation on the GBPNZD that may be considered an exotic pair and is probably not traded very often. Here, for the past 6 years, the price has been moving pretty much sideways, creating a giant symmetric triangle pattern (red).

Today, the FED will decide about the interest rate and we should expect massive moves on the USD and stocks. The safer option with less volatility is probably the EURGBP, our today’s hero. Here, we already learned the crucial data. Early in the morning, before the American session, the UK posted the inflation data that came higher than expected and higher than reported in the previous month. In general, this should be a positive info for the Pound and initially, it indeed was, as the GBP strengthened.