Author: FX

EUR/JPY drifts lower for the second successive day and slides back below the 200-day SMA. Intervention fears offer some support to the JPY and exert downward pressure on the cross.  Bets for less aggressive ECB rate cuts could limit losses for the shared currency and spot prices. The EUR/JPY cross remains under some selling pressure for the second successive day and drops to a two-week low, around mid-164.00s during the Asian session on Friday. The downfall is sponsored by a combination of factors and drags spot prices back below a technically significant 200-day Simple Moving Average (SMA). The Japanese Yen…

The dust seems to have settled after the U.S. election results were confirmed, as the U.S. dollar pared some gains while Treasury yields retreated. Risk assets like U.S. equities and bitcoin, on the other hand, carried on with their rallies as the FOMC maintained its dovish bias. Which headlines and economic updates drove price action in the past sessions? Headlines: Japanese average cash earnings steadied at downgraded 2.8% year-on-year gain (initial reading at 3.0%, consensus at 3.0%) in September, as price increases outweighed wage growth Australia goods trade balance narrowed from downgraded 5.28B AUD to 4.61B AUD as exports fell…

TAIPEI (Reuters) – Taiwan’s coast guard said on Friday it would offer rewards worth thousands of dollars for spotting Chinese activity at sea, including warships or submarines, saying it was harnessing “people power” to boost its own limited workforce. Taiwan, which China claims as its own territory, has complained for the past five years of stepped up Chinese military activity, and the Taiwanese coast guard has increasingly been involved in patrolling sea areas. China’s coast guard’s involvement in these activities has grown, which Taiwan officials say is part of a “grey zone” strategy that stops short of war and aims…

The Federal Reserve lowered its benchmark interest rate by 25 basis points to a target range of 4.50-4.75% in their November meeting, citing that inflation has “made progress” towards their objectives. FOMC policy details: Target federal funds rate lowered by 0.25% to 4.50-4.75% range Interest rate on reserve balances adjusted to 4.65% Overnight reverse repo rate set at 4.55% Continue monthly caps of $25 billion for Treasury securities and $35 billion for agency debt/MBS In their official statement, policymakers acknowledged “solid” economic expansion while noting eased labor market conditions. They also noted that risks to employment and inflation goals are…

The Candles Color and RSI Divergence Forex Trading Strategy is a method that combines visual candlestick patterns with one of the most reliable momentum indicators, the Relative Strength Index (RSI). Candlestick colors help traders quickly gauge market sentiment—whether the market is bullish or bearish—by simply looking at how the candles change in sequence. Meanwhile, RSI divergence acts as a leading indicator, identifying potential reversals in price trends by showing a disconnect between price movement and RSI momentum. Together, these tools create a synergy that helps traders make more informed decisions. In Forex trading, timing is everything. Spotting reversals early can…

Relative Volatility Index and Japanese Candlestick Forex Trading Strategy combines two powerful tools that can help traders better navigate the complexities of the forex market. The Relative Volatility Index (RVI) measures the direction of market volatility, giving insight into whether the market is gaining strength or losing momentum. On the other hand, Japanese candlestick patterns offer a visual representation of price action and trader sentiment, helping traders spot potential reversals or continuation patterns. Together, these two elements create a strategy that allows for more informed trading decisions based on both price behavior and volatility. What makes this combination effective is…

The world of financial markets thrives on information. While price charts paint a vivid picture of supply and demand, a crucial piece often remains hidden: trading volume. This hidden gem offers valuable insights into market sentiment and potential turning points. But how do you effectively analyze volume data within the MT5 platform? Enter the Volume Average Percent (VAP) indicator, a powerful tool that can elevate your trading strategies. Understanding the Volume Average Percent Indicator The Volume Average Percent (VAP) indicator simplifies volume analysis by presenting volume data as a percentage of the average volume over a specific period. This transformation…

Japan’s Ministry of Finance with the info after FX reserves down to US$1.239 tln at the end of ocot:USD/JPY selling intervention on July 11 was 3.1678 tln yen worthUSD/JPY selling intervention on July 12 was 2.367 tln yen worthI highlighted July 11 for reference. Y’all remember the officials in Japan refusing to confirm intervention when we all saw it plain as day? Clowns. Source link

The Greenback came under pressure as investors cashed out part of Wednesday’s “Trump trade” robust gains, while the Fed delivered a largely telegraphed 25 bps rate cut and Chief Jerome noted that inflation keeps heading towards the 2% target. Here is what you need to know on Friday, November 8: Following Wednesday’s climb to multi-month tops, the US Dollar Index (DXY) gave away part of those gains amidst a widespread profit-taking session as investors continued to digest Trump’s win and the Fed’s rate cut. The advanced Michigan Consumer Sentiment will take centre stage ahead of the speech by the Fed’s…

The FOMC statement is due out at the top of the hour and Fed Chairman Jerome Powell will hold a press conference afterwards.A 25 basis point rate cut to a range of 4.50-4.75% is assured but what comes next isn’t so the market will be looking for hints. In all likelihood, it will be a continuation of the current statement, which said “recent indicators suggest that economic activity has continued to expand at a solid pace” and that inflation has made further progress. “In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully…