USD/JPY Nears All-Time Highs: Key Forex Setups to Watch

By Tomasz Wisniewski|

Published: June 24 2024, 07:08 GMT+0

USD/JPY Nears All-Time Highs: Key Forex Setups to Watch

Hello traders, welcome to the new week—the last full trading week of June. This week promises some important economic data releases, though not overflowing with key events. The spotlight will be on inflation data from Canada on Tuesday, inflation from Australia on Wednesday, the US GDP report on Thursday, and the US core PCE price index along with Canada’s GDP on Friday. These events will undoubtedly set the tone for market movements and trader sentiment throughout the week.

Starting with the currency market, the Swiss franc is showing a small rebound after ending the previous week with a significant weakening due to the unexpected interest rate cut. This minor correction today is a reflection of that previous dip. Meanwhile, the New Zealand dollar and Japanese yen are underperforming, with the yen experiencing notable weakness.

In the commodities market, Friday was particularly harsh for gold and silver, which saw significant declines, reaffirming sell signals for these precious metals. Oil, on the other hand, has had a bullish run throughout June, though it is currently undergoing a short-term bearish correction. Despite this, the outlook for oil remains more positive compared to precious metals.

The indices are currently experiencing a slight correction, moving in a relatively flat pattern. The DAX, NASDAQ, Dow Jones, and S&P 500 are all exhibiting sideways movement as they await further catalysts. This pause in momentum could set the stage for significant moves later in the week.

Turning to interesting chart setups, USD/JPY is edging towards its all-time highs, drawing significant attention to see if it can break new records. Additionally, EUR/USD, the most traded forex pair, is showing promising signs as it bounces off a long-term uptrend line. This pair is also forming a double bottom pattern, which could signal a strong buy opportunity if confirmed.

As we head into the week, all eyes will be on these key events and market movements, setting the stage for potential trading opportunities and strategic decisions. Stay tuned and trade wisely!