We continue to watch JPY crosses in general on any return of a downdraft in risk appetite, but also on technical developments in the major JPY crosses. EURJPY has poked down toward the key range low and is on the verge of interacting with the 200-day moving average in the low 131.00s. A break of this area could lead to a further 200-300 pip selloff.
USD looks bullish from a momentum perspective as the most recent new low has been thoroughly rejected and our MACD indicator has thoroughly turned around. A firmer sign of upside potential would be a move above the 0.9450 pivot area for a try at a more profound rejection of the bigger bear trend.
USDCAD has been on a bumpy ride over the last couple of sessions, after a weak Canadian Retail Sales release saw the pair testing the 200-day moving average and the last minor 76.4/78.6% Fibonacci zone near 1.2750; it then pushed back lower on a modest January CPI upside surprise today.
The bulls have the upper hand if the 1.2600-50 zone that was pivotal on the way up offers support.
EURSEK is eyeing its highest close since the global financial crisis era after the Riksbank minutes showed a continued dragging of heels on the anticipated timeframe for unwinding of the bank's low policy rate. The 10.00 level now becomes the downside pivot of note on this move above that key level.