As the narrative unfolds

Just an update on the charts I've focussed on during today's session. My attention has obviously been on the JPY and the EUR as central bank action and economic data has guided today's narrative throughout.

EUR/USD wants to break out:

  • Market thinking the ECB underestimated inflation.
  • No lower low, means no confirmation that resistance held for the third time.
  • Looks like it's going north.

DXY then going lower:

  • Through the bottom of triangle.
  • Still has to break previous swing low to confirm.

USD/JPY at highs:

  • Shows just how weak the Yen is post BoJ when you look at the DXY.
  • The key daily previous resistance turned support zone looks to have held.
  • With the fundamentals backing them up, this is a good spot to play.

Tomorrow is obviously going to be gearing up to the Bank of England on Thursday, with the UK Manufacturing PMI smack bang in the middle of the session. So that will see some of the focus move across to GBP/USD.