The highlight is on the battle between Russia and Ukraine today, so danger sentiment has been a giant catalyst for worth motion.
Can EUR/JPY maintain its bullish break?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out NZD/CAD’s pullback setup forward of the RBNZ choice. Be sure you take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Information:
Australia’s wage worth index rose 0.7% as anticipated in This fall 2021
Australian building work finished sank 0.4% vs. projected 2.6% acquire
RBNZ hiked rates of interest from 0.75% to 1.00% as anticipated
RBNZ members debated between 0.25% and 0.50% hike, OCR observe adjusted larger
RBNZ head Orr: Capability pressures on financial system proceed to tighten
Asian markets bounce whereas ready for Putin’s subsequent strikes
German GfK client local weather index fell from -6.7 to -8.1 vs. -6.2 forecast
ECB official Holzmann suggests elevating charges earlier than ending bond purchases
ECB official Villeroy to gauge oblique impression of Ukraine disaster by March
U.Okay. overseas minister Truss: If Putin escalates, int’l group will enhance sanctions
BOE financial coverage report hearings at 9:30 am GMT
Eurozone last headline and core CPI at 10:00 am GMT
BOE MPC member Tenreyro’s testimony at 5:00 pm GMT
Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: EUR/JPY
EUR/JPY 1-hour Foreign exchange Chart
Markets appeared to breathe a sigh of aid over the previous buying and selling periods, as a spherical of sanctions on Russia is likely to be sufficient to discourage Putin from invading Ukraine.
Whereas safe-haven currencies just like the yen have been giving up earlier good points, the euro bought a further increase from ECB official Holzmann’s remarks suggesting that they might increase charges even earlier than their bond buy program ends.
This was sufficient for EUR/JPY to bust by way of its short-term falling development line, indicating {that a} reversal from the downtrend is within the works. The pair additionally appears to have accomplished its retest of the damaged resistance, which inspired extra euro bulls to cost.
The subsequent space of curiosity to maintain tabs on is the 130.50 to 131.00 zone, which additionally occurs to be the neckline of a small inverted head and shoulders sample.
A break above this stage, which is spanned by the dynamic resistance on the transferring averages, might affirm {that a} larger climb would observe. For now, although, the 100 SMA continues to be beneath the 200 SMA to mirror promoting strain.
Stochastic is already turning larger with out even dipping into the oversold area, suggesting that consumers are desperate to return.
Sustained risk-on flows may preserve lifting this pair all through the subsequent session. Simply be sure to take note of international headlines to gauge if buyers may shift again to risk-off mode!
