Forex: BoJ Critical for USD/JPY, EUR/USD Hints at Major Swing
This past week was marked by multi-month and year highs, lack of trend and no unifying driver. Next week is looking more like a swell in volatility, but still lacking for a common driver. At the top our trading docket, we have to watch USDJPY and the other yen crosses as we head into the long-awaited Bank of Japan (BOJ) rate decision. The incredible yen tumble these past two to three months was founded on the expectations of an unlimited stimulus effort with the same look-and-feel of the US and European efforts. This is a high hurdle to cross. Meanwhile, EURUSD may lack for big-ticket items on the docket, but its activity and market separation suggest a major drive is in store for the near future. We discuss both of these big ticket items and the trade potential for both in the weekend video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.