EUR/USD, EUR/JPY and USD/JPY under pressure following BoJ Ueda’s comments
EUR/USD, EUR/JPY and USD/JPY under pressure as BoJ’s Ueda expects “wage-driven inflationary pressures to heighten, as the economy continues to improve and companies keep hiking pay” but avoids giving a date.
EUR/USD hovers above support
Last week EUR/USD dipped into its major two-year support zone which consists of the November 2023 low at $1.0517 and the October 2023 trough at $1.0449. At the beginning of this week the cross hovers above last week's $1.0497 low. Were it to give way, the October 2023 low at $1.0449 would be eyed. Further down lies the January 2023 low at $1.0423.
Minor resistance above Friday's $1.0593 high sits in the $1.0666-83 region.
EUR/JPY slips
EUR/JPY continues to trade within its November downtrend channel with the lower channel at ¥162.13 offering potential minor support with the ¥161.90 55-day SMA and the ¥161.85 mid-October low. Failure there would probably lead to the ¥160.00 region being revisited.
Minor resistance above the ¥163.60-89 August, September and early October highs can be spotted along the 200-day simple moving average (SMA) at ¥164.87.
USD/JPY rally takes a breather
We saw volatile moves in USD/JPY as Bank of Japan (BoJ)’s Ueda expects “wage-driven inflationary pressures to heighten, as the economy continues to improve and companies keep hiking pay” but avoids giving a date as the “actual timing of adjustments will continue to depend on developments in economic activity and prices as well as financial conditions going forward.”
Having come close to its late May high at ¥157.70, USD/JPY is taking a breather around the 28 October high at ¥153.88. Further minor support can be spotted at the 23 October high at ¥153.19 and, further down, along the 200-day SMA at ¥151.82.
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