EUR/USD Nears Week Long Range Break; JPY-crosses Continue Run
- EURUSD H4 MACD nears sell point below signal line.
- JPY-crosses see broad continuation in BoJ-inspired trend.
- See the 'high' importance events on the DailyFX Economic Calendar.
Event risk is at its lowest point of the week on Tuesday, but it's shaping up to be the 'calm before the storm' if anything. Numerous 'medium' and 'high' rated events will help unleash volatility starting tomorrow, including the European Central Bank meeting on Thursday and the November US labor market report on Friday.
Ahead of then, we're starting to see the ranges that persisted around the holiday trading conditions last week start to bend, just not yet break. One of these instances is occurring in EURUSD, where the closing highs and lows on H4 charts going back to November 27 are starting to be probed.
Elsewhere, the big theme at present is the ongoing Japanese Yen depreciation. USDJPY's triangle/flag going back to November 17 is on the verge of cracking higher; and the momentum in EURJPY and GBPJPY sees continuation higher as well, irrespective of event risk.
See the above video for targets in the GBPJPY and USDJPY potential breakouts, as well as technical considerations in EURUSD and GBPUSD.
--- Written by Christopher Vecchio, Currency Strategist
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.