FxWirePro: USD/JPY depressed below 128 handle amid retreating yields, Fed chair Jerome Powell's speech in focus
FxWirePro- EURUSD Daily outlook
Ichimoku analysis (4-hour chart)
EURUSD showed a minor recovery after a sell-off of more than 50 pips. The surge in US treasury yields is putting pressure on the pair at higher levels. The number of people who have filed for unemployment benefits rise to 286 million last week, the highest level since Oct. The Philly Fed manufacturing index jumped to 23 in Jan compared to a forecast of 20. Markets eye US Fed monetary policy next week for further direction. EURUSD hits an intraday high of 1.13401 and is currently trading around 1.13365.
On the higher side, near-term resistance is around 1.1380 and any convincing breach above will drag the pair to the next level 1.1435/1.1500. The pair's immediate support is at 1.1300, breaking below targets of 1.1260/1.2300.
Indicator (4-hour chart)
Directional movement index – Neutral
It is good to sell on rallies around 1.1378-80 with SL around 1.1435 for a TP of 1.1260.