Perspective & Insight: EUR GBP JPY Majors & Crosses

On a 'Grand-scale Price Action Analysis'; there exist a similar view where the Euro/Yen (EURJPY) cross rates & USDJPY shows a directional market significance particularly with Asian traders. With the Euro's slowing inflation rate there is much to anticipate that the extended market consolidation on the USDJPY may soon prove to be a worthwhile waiting game for some positively motivated Asian traders & investors.

The daily & weekly price consolidation on the USDJPY remains to be @101.05/10 (S1) to 102.60/80 (R1) since February 2014. While the USDJPY held these price range; Sterling's ability to hold versus the Japanese Yen (GBPJPY) has had the similar effects of the run from a low @137.80 in 03.2013 to this period today @173.30. And much of the currency pairs traded have evolved around these pairs alternating moves as trend-following strategies where applied.

With that said, most US & European investors have been trying to weigh & setting aside a lot of market distortions from the geopolitical tension lingering-on in the European & Middle-East conflicts while still focused on the recent correction on the Dow Jones & S&P markets. And somehow manages to pullback from their daily low ranges and likewise finishing the day sessions with barely a double digit decline. These moves are part of a technical price alignment primarily based on the recent reports for jobs and a surprising housing contraction that led the pace for the decline.

To a certain extent that this similarity had also occurred with the overall picture perfect for Cable after a wide trading range breakout beyond the 1.6745/60. And registering a high @1.7192 before the current corrective move to as low as 1.7035; while the EURUSD recent high @1.3700 on 07.01 have prompted the single currency pair to its present lower levels @1.3522 as of this writing. As both majors have shown their respective resiliency to stay above these levels, one can not discount the probability that these currencies may still hold some underlying strength in moving forward contrary to its corrective phase which is likewise still in the making. Key levels to watch for CABLE still remains @1.6970-1.7000 range support and as for Euro is initially set @1.3450/70 to its current market rate @1.3520.

Highlights for the Week

Jul 23   
Australia Consumer Price Index 01:30 GMT     3.1% Consensus     2.9% Previous
Bank of England Minutes
08:30 GMT
Bank of England Gov. Mark Carney Speech
11:45 GMT
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