Technical Outlook

-Bears pushed the price down of USDJPY by 4.95% forming a support at $137.717

-EURUSD broke the resistance 1.10782 and has form break and retest pattern

JAPAN (JPY): BOJ Press Conference

The Bank of Japan (BOJ) press conference looks at the factors that affected the most recent interest rate decision, the overall economic outlook, inflation and offers insights into future monetary policy decisions.

The report is due Friday, 28 July 06:00 GMT

USDJPY Technical Analysis:

USDJPY is in an uptrend and was seen trading inside the bullish channel forming higher highs and higher lows. The price was constantly trading below both the 200 and 50 moving averages until 17th May 2023, when the price broke above the moving averages and started its drastic upwards movement. 

Soon after crossing above the moving averages, the price there formed a golden cross signalling the prices may trade further up, continuing the bullish trend. The bulls have pushed the price up to $144.867, forming a resistance right after which the bears entered the market and bought the prices down at $137.717, which is 4.95% down. This price, however, is the new support.

The price is now trading between $144.867 and $137.717. Traders must go with the trend considering the overall trend is uptrend.

Pivot Points: USDJPY

USA (USD): CPI (MOM)

The Core Personal Consumption Expenditure (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy. Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. Last month’s CPI rose to 0.3%, which was according to the forecast.

The report is due Friday, 28 July 12:30 GMT

EURUSD Technical Analysis:

EURUSD is in an uptrend, with price trading inside the bullish channel. The market is seen on the bullish side, with the price trading above both the moving averages. The RSI at the time is at 59.78, signalling an overbought condition.

The EURUSD chart clearly shows the price forming higher highs and low patterns that recently breached the resistance of $1.10782. The price is in a pullback phase and has not yet broken below the support. If the price closes above $1.10782, the price may trade further. Traders also must wait until the price breaches the $1.09000 level, as the higher low needs to be breached for the trend to be negative.

The break and retest pattern is an excellent opportunity for all traders looking for BUY. However, traders must also look into the overall confluence.

Pivot Points: EURUSD

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