Daily Forex Market Preview, 22/01/2018
The U.S. dollar was seen closing with some gains on Friday, in the hope that Washington would pass the spending bill. Although it was cleared by the U.S. House, the bill stalled in the U.S. Senate. Late night talks over the weekend did not yield many results and lawmakers are expected to reach some agreement today.
The Euro was seen attempting to recover the losses on Friday but after rising to an intraday high of 1.2294, the currency pair gave up the gains and settled lower to close at 1.2223.
Looking ahead, the economic calendar is light today. The Eurogroup meetings are scheduled throughout the day while in the NY trading session, Canada will be releasing its wholesale sales data. Economists forecast an increase of 1.0% for the month.
USDJPY 22-01-2018 Intra-day analysis
USDJPY (110.76): The USDJPY continues to hover around the 110.70 level of support. The strong bullish close last week near this level and the short-term dip indicates a temporary base being formed. On the 4-hour chart, minor resistance is seen at 111.00 – 110.88 region. USDJPY will need to close above this level in order to target 111.61 resistance level. To the downside, if the resistance holds the gains, we could expect USDJPY to move back into its previous range. A break below the previous lower support at 110.40 will be key however, this level could hold the declines in the short term.