FOMC minutes released yesterday in the evening were seen as dovish as they included mention that a number of Fed members saw it as appropriate to slow the pace of tightening in the near future. This has sent the US dollar lower and allowed USDJPY to make another break below 140.00. The pair slid further below 139.00 today as USD is worst performing G10 currency and JPY is the best performing. However, attention today may be on EURJPY as high JPY volatility persists and ECB being set to release minutes from the latest meeting at 12:30 pm GMT today.
The pair also looks interesting from a technical point of view. Taking a look at EURJPY chart at H1 interval, we can see that the pair has recently broken below the lower limit of a rising wedge pattern. Textbook range of the downside breakout is around 250 pips, putting potential target for the bear at around 142.60 mark. However, in order to reach this area, bears would first need to overcome the lower limit of the Overbalance structure at 144.15 mark. Should this happen, we would see a theoretical short-term bearish trend reversal and a definite end to a recent upward correction.
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