The USD showed moderate strength today and as the U.S. session got underway, an entry long was found on the USDJPY risking 11 pips for a potential 39 pips to our daily target (not shown) at 113.82. Price moved up but failed twice to close above its Asian session high and left a long upper wick. We closed the trade at the European close not wanting to give back any more pips.
We now enter the last quarter of the year with a very strong U.S. economy continuing and another interest rate increase expected in December. The E.U. and U.K. Brexit agreement remains unresolved. Inflation is appearing in Europe with German inflation y/y for September at 2.3% confirming the E.C.B.’s recent hawkish tone. The impact from the China U.S. trade tariffs are keeping the market unsettled some days yet appear to be completely disregarded other days.
Looking forward to final push.
Enjoy your weekend!
