Forex: EUR/USD and USD/JPY Reversals Depend on Stimulus or Risk Trends
EURUSD has retreated to channel support in the wake of oppressive GDP figures while USDJPY has carved out a head-and-shoulders pattern on currency war chatter. Both seem on the verge of reversal, but we do not yet have all of the elements for a committed trend - much less a dramatic change of course. With a keen eye on the incredible complacency in volatility measures and sentiment benchmarks like the S&P 500, the hurdle is whether risk appetite is revived or reviled. In the weekend video, we discuss the G20 meeting and Euro-area event risks' influence over sentiment with a direct focus on EURUSD and the yen crosses.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.