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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
USD/JPY Rebound Eyes 121.00- Euro Outlook Hinges on ECB Rate Decision

USD/JPY Rebound Eyes 121.00- Euro Outlook Hinges on ECB Rate Decision

David Song,

Talking Points:

- USD/JPY Mounts Larger Rebound- Expectations for Additional BoJ Support Lingers.

- EUR/USD Near-Term Outlook Hinges on More Detailed ECB Easing Cycle.

- USDOLLAR Rebound Approaches Next Hurdle- New, Existing Home Sales on Tap.

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


USD/JPY Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • USD/JPY may mount a larger recovery ahead of the Bank of Japan’s (BoJ) October 30 interest rate decision as the pair works its way back into the range from earlier this month, while the Relative Strength Index (RSI) threatens the bearish formation from back in May.
  • With Japan unexpectedly posting another trade deficit in September, a greater willingness from the BoJ to further expand its asset-purchase program may threaten near-term resistance around 120.70 (50% retracement) to 121.00 (23.6% retracement) amid the deviating paths for monetary policy.
  • DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long USD/JPY since June 8, but the ratio continues to come off of recent extremes as it narrows to +2.07, with 67% of traders long.


EUR/USD Daily Chart
  • EUR/USD looks poised to retain the narrow range from earlier this week as market participants eagerly wait for the European Central Bank (ECB) rate decision amid speculation for a major announcement.
  • Even though ECB President Mario Draghi is widely expected to endorse a dovish outlook for monetary policy, an attempt to buy more time may heighten the appeal of the Euro as market participants scale back bets for an imminent expansion/extension of the quantitative easing (QE) program.
  • As EUR/USD holds above former resistance around 1.1260 (50% retracement) to 1.1270 (38.2% retracement), 1.1500 (23.6% retracement) to 1.1520 (61.8% expansion) remains the next region of interest especially as the RSI preserves the bullish formation from back in March.

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

Read More:

USDOLLAR Holding Critical Support

NZDCAD Posts Outside Day Reversal Pre-BoC; Shorts Face 8700 Hurdle

USDOLLAR(Ticker: USDollar):

IndexLastHighLowDaily Change (%)Daily Range (% of ATR)
DJ-FXCM Dollar Index11948.2511950.211926.290.1353.28%
USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • With the ongoing series of higher-highs, the Dow Jones-FXCM U.S. Dollar may continue to retrace the decline from earlier this month as the Federal Reserve largely keeps the 2015 liftoff on the table.
  • Amid the ongoing slew of mixed data coming out of the U.S. economy, disappointing developments for Existing & New Home Sales may drag on interest rate expectations as Chair Janet Yellen remains in no rush to normalize monetary policy.
  • In light of the recent advance, waiting on a close back above the Fibonacci overlap around 11,951 (38.2% expansion) to 11,965 (23.6% retracement) to favor additional dollar strength.

Join DailyFX on Demand for Real-Time SSI Updates!

--- 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

New to FX? Watch this Video

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