EUR/USD Technical Analysis

The euro rallied a bit in the early hours here on Monday to reach the 1.18 level. The 1.18 level is a large, round, psychologically significant figure that, of course, has been important multiple times. And if we can break above here, it opens up a move to the 1.19 level, possibly even the 1.20 level. Short-term pullbacks will continue to find plenty of momentum, I think, perhaps trying to break out, but there are a lot of questions out there about the risk appetite, and I think that will continue to be reflected in this pair. If we break down below the 1.17 level, we probably just sit right in that consolidation area for a while.

USD/JPY Technical Analysis

The US dollar initially tried to rally against the Japanese yen, but gave back the gains, and we find ourselves just sitting here. At the 200-day EMA, the Friday candlestick was a hammer. It looks like we might try to form some type of negative shooting star candle. So, I think this is a market that just really doesn’t have anywhere to be at the moment, with the 146 yen level offering support and the 149 yen level offering resistance.