No guessing what the highlight is on today's calendar
The dollar is looking a bit better today across the board and the BOJ putting themselves about in the bond market is the reason for that.
I'm not sure why that would have such an effect as we already knew that they wanted to keep yields close to zero so any modest move away would bring action from them. Maybe the market just needed a reminder of that fact and the BOJ obliged.
It is what it is and USDJPY has risen in conjunction with the yen weakening. However, the dollar has strengthened elsewhere too. Maybe the fact that Trump is expected to sign an executive order to loosen financial regulations today is giving the buck a lift too. Maybe the second rejection of testing 112.00 is all that seller needed to bail out of recent shorts.
USDJPY H4 chart
The euro certainly looks like it's made a case for a strong top at 1.0800/30, an area I've been watching for a long time.
EURUSD daily chart
This area was one of my assessment points for my longs and I was very close to taking some off yesterday, or placing a short term short. However, late in my session yesterday, the PA looked like it wasn't going to stray far from 1.08, and given the fundamentals at the moment, I was happy to leave things alone.
Moving forward to the prices currently, USDJPY needs to mount a serious attempt on 114.00 or else we're heading back down, with 112.50 once again playing the S&R role it's done of late.. The pair is still in rally selling mode in my mind, so I'll be looking for a decent NFP pop view a view to a short fade. The only thing that might hold me back is a very strong wages number.
For EURUSD, 1.0700/10 is a short-term line in the sand, followed by 1.0650/60, 1.0615/20 and then 1.0600/10. Looking up, 1.0770/80 looks to be the main resistance.
