One other currency that bears watching in coming days is the Japanese yen, especially in connection with any further risk contagion from the coronavirus story, which has only seen very weak transmission into currencies. It is a difficult issue to quantify for markets, but suspect the ongoing bid in safe haven treasuries is one indicator suggesting some level of concern. EURJPY is the JPY pair closest to having a look at new downside breaks.
Today’s Breakout Highlight: EURUSD
EURUSD continues to move in slow-motion after breaking to new lows for the year in the wake of the ECB meeting, and next week sees the FOMC meeting up on Wednesday, which may either confirm or reject this latest break. In the bigger picture – the 1.1000 level looks more important than the level just broken ahead of the final cycle lows. Traders looking for momentum in this pair have been regularly burned over the last eighteen months or more, but this record low volatility may not last for long.