Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Euro Range in Focus- USD/JPY Downside Targets Remain Favored

Euro Range in Focus- USD/JPY Downside Targets Remain Favored

Talking Points:

- EUR/USD Range in Focus; EU Court Ruling in Favor of ECB’s OMT Program.

- USD/JPY Slips to Fresh Monthly Low as Risk Appetite Continues to Falter.

- USDOLLAR Weighed by Dismal U.S. Retail Sales; Risks Larger Correction on Weak CPI.

For more updates, sign up for David's e-mail distribution list.


EUR/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • EUR/USD pares decline to 1.1726 even as European Court of Justice rules in favor of the European Central Bank’s (ECB) Outright Monetary Transactions (OMT) program; close above 1.1740 may continue to signal range-bound prices ahead of the January 22 meeting.
  • With growing expectations of seeing the ECB announce its quantitative easing (QE) program next week, may see a short-squeeze in EUR/USD should the Governing Council fail to act.
  • DailyFX Speculative Sentiment Index (SSI) show retail crowd remains net-long EUR/USD, with the ratio currently standing at +1.18.


USD/JPY Daily Chart
  • USD/JPY extends decline as risk appetite continues to wane; downside targets remain favored as the Relative Strength Index (RSI) retains the bearish momentum.
  • Need to see a close below 116.10 (61.8% retracement) for conviction/confirmation for a larger pullback in USD/JPY.
  • May see a test of the December lows (115.55) followed by 114.55 (78.6% retracement) should the Japanese Yen continue to benefit from the drop in market sentiment.

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: USD/JPY Topping Out Or Just Consolidating?

Momentum Gathering Pace in EUR-crosses - Watch EUR/USD 5-EMA

USDOLLAR(Ticker: USDollar):

IndexLastHighLowDaily Change (%)Daily Range (% of ATR)
DJ-FXCM Dollar Index11615.9711665.8611588.21-0.27168.06%
USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Dow Jones-FXCM U.S. Dollar falls to a fresh weekly low of 11,587 following as Retail Sales report disappoints; may face a larger pullback should it fail to close above 11,623 (23.6% retracement).
  • May see the dollar face additional headwinds later this week should the U.S. Consumer Price Index (CPI) show a greater risk for disinflation & drag on interest rate expectations.
  • Break of the bullish RSI momentum may highlight a larger USDOLLAR decline, with the next downside objective coming in around 11,567 (38.2% retracement).

Join DailyFX on Demand for Real-Time SSI Updates!

MBA Mortgage Applications (JAN 9)12:00--49.1%
Advance Retail Sales (MoM) (DEC)13:30-0.1%-0.9%
Advance Retail Sales ex Auto (MoM) (DEC)13:300.0%-1.0%
Advance Retail Sales ex Auto & Gas (MoM) (DEC)13:300.5%-0.3%
Advance Retail Sales Control Group (DEC)13:300.4%-0.4%
Import Price Index (MoM) (DEC)13:30-2.7%-2.5%
Import Price Index (YoY) (DEC)13:30-5.2%-5.5%
Business Inventories (NOV)15:000.3%
Fed Publishes Beige Book Economic Survey19:00

Click Here for the DailyFX Calendar

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.