New York Forex Report: Markets Await Key US Data Next

New York Forex Report: Following the wild swings we had in JPY pairs overnight as the BOJ unexpectedly cut rates into negative territory for the first time in Japanese history, markets have remained range-bound against yesterday’s move as traders await key data over the US session with US Advanced 4Q GDP the headline event. USD has been able to regain higher ground over European trading so far today with USD in demand as JPY tanks. This latest move by the BOJ cements the policy divergence in play between USD vs JPY, ECB.

EURUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Fundamental: EUR was stronger over the European morning supported by better than expected EuroZone CPI data for January which saw core inflation tick up to 1% against 0.9% expected with headline inflation in-line with expectations.

Technical: Trading mid to upper range, a sustained breach of 1.08 bids opens 1.07 range lows. A breach of 1.0990 trend resistance opens a broader 1.1240 symmetry corrective objective.

Interbank Flows: Bids 1.08 stops below. Offers 1.0950 Stops above.
Retail Sentiment: Bullish
Trading Take-away: Neutral

GBPUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Fundamental: Sterling was drivne lower over early European trading as month end flows and JPy weakness sparked a resurgent US Dollar.

Technical: A breach of 1.42 opens a retest of last weeks seven year lows. Over 1.4450 eases immediate downside pressure and sets up a broader correction.

Interbank Flows: Bids 1.42 below. Offers 1.4450 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines

USDJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: USDJPY continues to strengthen over early European trading following the BOJ’s surprise rate move. US data now eyed.

Technical: While 119 supports bulls target 121.66 an upside breach here opens a move to test 123.64.

Interbank Flows: Bids 117.50 stops below. Offers 119 stops above
Retail Sentiment: Bearish
Trading Take-away: Sidelines

EURJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: Perfect storm of positive data driven EUR strength and rate-cut driven JPY weakness sees EURJPY continue higher over European trading so far today.

Technical: A close over 131.65 eases bearish pressure and opens a test of 134 next.

Interbank Flows: Bids 129 stops below. Offers 132 stops above
Retail Sentiment: Bearish
Trading Take-away: Sidelines

AUDUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Fundamental: AUD traded lower against the US Dollar over early European trading as month end flows see USD in demand and commoditues under pressure with Copper and Oil both lower so far today.

Technical: While .7000 caps intraday downside expect a test .7150. Only a closing breach of .7150 eases immediate downside pressure.

Interbank Flows: Bids .7000 stops below. Offers .7150 stops above
Retail Sentiment: Bearish
Trading Take-away: Sidelines

USDCAD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bullish

Fundamental: CAD fell back agaisnt the US Dollar over early European trading today as Oil prices softened from yesterday’s sesion highs. Canadian GDP is main domestic data focus over the US session

Technical: While 1.4150 caps upside reactions expect a broader corrective phase to test AB=CD corrective swing target at 1.3750 support. Only above 1.43 eases immediate downside pressure and opens a retest of 2016 highs.

Interbank Flows: Bids 1.3950 stops below. Offers 1.4150 stops above
Retail Sentiment: Bullish
Trading Take-away: Neutral