Kickstart your FX trading for March 7 with a technical look at EURUSD, USDJPY and GBPUSD

There is a central-bank tilt in EURUSD and the USDJPY with the focus not on the Fed but on the ECB and the Bank of Japan.

The EURUSD is moving lower after the ECB cut their inflation expectations going forward and ECB Pres. Lagarde talked about continued slower growth. However, she did also mentioned that they still needed to see more data and information before making a decision. The EURUSD retested it’s broken 38.2% retracement of the move down from the December high on it’s run lower. That level comes at 1.0864. Recall from yesterday, the price not only broke away from the 38.2% retracement level, but also tested its 50% midpoint at 1.09165 before finding willing sellers. The 50% is at 1.09165.

The Bank of Japan gave its little hints on exiting negative interest rates and yield curve control (it will be slow but it could be a start). As a result, the USDJPY tumbled below its 200 bar moving errors on the 4-hour chart at 149.155 and extended down to and through its 100-day moving average at 147.813.

While the EURUSD is moving lower, the GBPUSD is higher today and moves closer to the 1.2800 target (trades at 1.2753 currently). The high price reached 1.2762 apart today.

This article was written by Greg Michalowski at Source