23 Jan, 2024
5 minutes
Daily Technical Analysis January 23th 2024
1. EUR/USD Analysis:
News Summary:
Commerzbank has warned that wage growth could rob the European Central Bank of the inflation victory. Price rises in the euro area have slowed significantly in recent months as cooling energy and food inflation has been passed on to core inflation, easing increases in price of industrial goods and services, but wages are still rising faster than 2% target. It could mean inflation will exceed the target range and reach around 3%.
Trend Analysis:
We can see EUR/USD continues to fluctuate and is lower than the 48 hours moving average on H4 chart. The MACD double line and the energy bar shrink again, but the euro is likely to be steady ahead of Thursday ECB meeting. For short term tactic, sell limit could be used, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [1.0770]
Key Resistance Levels: [1.1000]
Pivot Points [1.0930]
2. USD/JPY Analysis:
News Summary:
As the world's recognized safe-haven currency with the lowest financing costs, the status of the Japanese yen is being evaluated. In recent years, the Bank of Japan has implemented ultra-loose policies, and the Yen is facing unprecedented challenges. According to Japanese government estimates, the budget target for fiscal year 2025 will not be achieved, which means that huge deficits are dragging down the country's economy.
Trend Analysis:
We can see USD/JPY fluctuated at a high level above 48 hours moving average. In addition, the MACD histogram bar and double line shrank above the zero axis. Due to Japan's trade deficit and long-term low interest rate policy, the yen is at an all-time low. The buy limit can be placed, stop loss is compulsory.
Today's Key Price Levels:
Key Support Levels: [147.00]
Key Resistance Levels: [149.00]
Pivot Points [147.70]