In the kickstart video, I take a technical look at the EURUSD, USDJPY and GBPUSD by applying certain technical tools that help traders define the bias, risk and targets. Those three things are essential to traders success.
Today, the 3 major currencies are mixed vs the USD. The EUR is little changed, the JPY is lower vs the USD, and the GBP is also lower vs the greenback.
- For the EURUSD it is below both it's 100 and 200 hour MA but did find support buyers against the broken 38.2% of the move down from the mid-October high. A battle is on.
- For the USDJPY it broke to yet another new high gong back to January 2025, breaking a swing level at 155.88 (now support or close risk for the buyers). The next target is up at 156.77
- For the GBPUSD, it fell away from its near converged 100/200 hour MAs between 1.3150 to 1.3155 and below the 1.3100 level on its way to a swing area defined by lows and highs going back to the end of October between 1.30837 and 1.30956. Buyers came in and pushed the price off that level. Close resistance ahead of the 100/200 hour MAs is a swing level at 1.3140 area.
Watch the video to see all the levels with more detailed view of the market.
IN news this morning:
- UK October CPI came in exactly as expected at +3.6% y/y, with core CPI steady at +3.4%, and services inflation easing slightly to +4.5% from 4.7%. The report offered no major surprises, but the softer services figure gives the Bank of England a bit more confidence that underlying inflation pressures continue to cool. With markets already pricing an 80% chance of a December rate cut, today’s data keeps that outlook intact—and may even nudge expectations slightly more dovish.
- Japan Finance Minister Katayama and BOJ Governor Ueda met and Katayama said her meeting focused on maintaining strong coordination between the government and the Bank of Japan, noting that the recent tweak to the joint BoJ-government statement was purely technical and did not change its substance. She emphasized that there was no discussion on FX, while BoJ Governor Ueda reiterated the current policy stance and the shared goal of achieving sustainable inflation supported by wage growth—without any disagreement between the two sides. On fiscal matters, Katayama said there was no discussion of the size of the stimulus package or the issuance of new JGBs, stressing instead that the government remains focused on reducing the debt-to-GDP ratio.
- A senior economic adviser to Japan’s Prime Minister Sanae Takaichi says the Bank of Japan is unlikely to raise interest rates before March, arguing that policymakers need to wait and see whether a planned ¥20 trillion fiscal stimulus package will meaningfully boost demand. investingLive This cautious stance contrasts with market expectations of a possible January rate hike, especially as the Japanese economy is under pressure—Q3 GDP contracted and core inflation remains below 2%. The USDJPY moved higher. The EURJPY trades to yet another new record high.
Looking at the pre-market for US stocks, major indices are up marginally after another move lower yesterday saw the major indices move down (Dow -1.07%, S&P -0.83% and the Nasdaq -1.21%). Nvidia earnings will be released after the close. Shares of Nvidia are up 1.59% after falling -2.81% yesterday :
- Dow is up 45 points
- S&P is up 15.18 points
- Nasdaq is up 66 points
US yields are lower:
- 2 year yield 3.566%, -1.5 basis points
- 5 year yield 3.680%, -1.5 basis points
- 10 year 4.107%, -1.3 basis points
- 30 year 4.728%, -1.1 basis points.
