EUR/USD on the rise, while USD/JPY shows signs of weakness after BoJ action
EUR/USD expected to push higher, while USD/JPY reaction to BoJ action signals the potential for another turn lower.
EUR/USD looks set to push higher once again
EUR/USD has largely been in consolidation mode over the course of the past two weeks, although the price appears to be regaining traction once again. Today does see US pending home sales out of the US, with markets expecting to see things calm down after dramatic declines of 4.6% and 10.2% over the past two-months.
In any case, the wobbles seen on US stock markets have done little to lift the dollar here, with a decline through $1.0443 support required to bring this current uptrend to an end. Until then, another push higher looks likely before long.
USD/JPY on the rise but recent trend holds for now
USD/JPY has been on the slide of late, with the price falling back into a four-month low last Tuesday. The Bank of Japan (BoJ) has stepped in with an unscheduled bond buying operation overnight, following a spike through the limit in Japanese Government Bonds. The signal that the BoJ are struggling to maintain control highlights the potential for further bond buying in the future.
However, we have seen the price turn lower since that announcement. With that in mind, the bullish trend seen over the course of the past two months does remain in play, with another turn lower looking likely unless the price breaks up through the $1.3817 swing high.
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