We did not see much from the US dollar yesterday as its index kept fluctuating around its daily pivot throughout the day, while the bearish rally on GBP / USD continued for the second day due to the weakness of the pound against most of the currencies.
at the moment the price behavior of GBP/USD could be leading for more bearishness in the medium term, but this can only be confirmed by breaking the support level 1.3670, I will be waiting for this before I present my view about this pair although I was expecting it to continue its bullish rally tel the end of the week
We must also take into account that the Moderna vaccine was approved for use by the British regulatory authority, on January 8, which made it the third coronavirus vaccine authorized for use after the Pfizer and AstraZeneca vaccines. (About 5,000 doses were sent to vaccination centers in the UK on Tuesday).
the UK has bought a total of 17 million doses so far, and this may help control the situation, which in turn will help in the recovery of the pound, especially since the results of the third phase showed that the effectiveness of the Moderna vaccine against infection with "Covid-19" is 94.1%.
In today's post, we will take a look at the USD/JPY and we will also take a quick look at the EURUSDweek since it has reached the targeted area already.
Today's economic events:
For today there are not many important events in fact all the events are of low impact except for Fed Chair Powell Speaks at the end of the day so I expect the market to be calm and trendy during the morning to afternoon (GMT), and then we will see if Fed Chair Powell Speaks It will change market sentiments and show some support for the US dollar.
The pair managed to reach the targeted area near 1.000 before the end of the week, I still think that it will remain at these levels because the EUR / USD has moved far away from its weekly opening and it is unlikely to be able to move below that level for before the end of this week, so the EURUSDweek is not for sell.
At the moment, it seems that the EUR / USD will target the support level at 1.1836, so we may see the EURUSDweek fluctuating above 0.8000 until the market closes.
Remember, if you are looking to fulfill the withdrawal conditions, long trades above 0.9000 will not be counted within the required volume for profit withdrawal.
USD / JPY Long Term Technical Analysis (Update):
At the end of last month, I shared a comprehensive long term analysis of this pair (more details here ) and it was important for us to come back to it in order to take a look at last month candle and whether it will have a positive impact on the pair or cancel the bullish scenario.
Here on the chart, we notice that the price closed at high levels, giving us a positive candle that supports more bullishness. Not only this, but the monthly closing was outside the wedge pattern confirming the breakout.
So unless the price closes below level 106.378 by the end of this month, I do not think that this leaves any doubt about the pair's bullishness from a technical point of view.
however on the weekly chart, it is possible that the price is on the way to test the wedge pattern and this means the continuation of the corrective decline on short time frames, this is not a bad thing as it may give as the opportunity to buy from lower levels
last time, I took a buy position on the USD / JPY according to my strategy, and although the trade made some profits at the beginning and the price moved half the distance to the target, it has moved down since then as we saw in the technical analysis, so now I have to start over with a $ 100 demo account as usual, but I will not take any trades this week because I might be busy.