Todays Free Forex Signals via Telegram 22 09 2022

TOKYO (Reuters) – Telegram Forex Signals – The U.S. dollar surged to a new 24-year high against the yen after the Bank of Japan stuck to ultra-easing stimulus on Thursday, just hours after the Federal Reserve surprised markets with hawkish interest-rate projections.

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Fibonacci arc example Fibonacci
With this tool you get three diagonal lines. Each one of them represents Fibonacci ratio and when price is getting close to this lines, you know that this might be area of support or resistance. You draw a trendline between low and high to get this lines. Actually, this tool is pretty handy. Try to exercise on historical data, or test it in your trading. It is all about selecting right low and high and you will get good results.

The greenback had already pushed to a new 37-year peak to sterling ahead of the Bank of England’s policy announcement later in the day, and to a two-decade top versus the euro.

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Todays Free Forex Signals via Telegram 22 09 2022

It also notched new highs against regional currencies from the Australian and New Zealand dollars to the offshore Chinese yuan and the Korean won, as well as the Singapore dollar and Thai baht.

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The yen went for a wild ride in the immediate aftermath of the BOJ’s decision to keep short-term rates negative and continue to pin the 10-year government bond yield near zero, reinforcing market expectations that Japan’s central bank will continue to swim against a global tide of monetary tightening, despite a weaker currency.

The dollar leapt as high as 145.405 yen for the first time since August 1998, but then swung sharply back to as low as 143.50, before last trading 0.45% higher than Wednesday at 144.75.

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To draw Fibonacci, we need to select a swing move. Additionally, we have to try to do that in the right direction. That is why it is crucial to understand price behavior, trends, swings. Let’s start from tricky question and basics of price behavior. In which direction, can price move? You probably would answer: up and down. That is correct answer, only that there is one “but”. What if there is no main trend? If there is no strong trend, price will probably move sideways. Statistics says that price is about 30% of time in trend and rest of this time is moving in range. Why moving in range is so bad thing? Because there is no clear direction and price move up and down so it is very hard to make money in that kind of movement. Just look at chart below, is it something you would like to trade?

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“There could be concern about intervention, or even a rate check by the BOJ,” said Tohru Sasaki, head of Japan market research at J.P. Morgan in Tokyo. “It could also just be the result of market illiquidity.”

Todays Free Forex Signals via Telegram 22 09 2022

“The market will be nervous, there will be some volatility for a while, but eventually, over the medium term, the weak yen trend will continue,” Sasaki said. “The 1998 peak was at 147.60, so the market will be looking at that level.”

Japan’s top currency diplomat said later that officials had not intervened in the market.

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The dollar index – which measures the greenback against a basket of six counterparts including the yen, euro and sterling – had earlier risen as high as 111.79 for the first time since mid-2002.

On Wednesday, the Fed issued new projections showing rates peaking at 4.6% next year with no cuts until 2024. It raised its target interest rate range by another 75 basis points (bps) overnight to 3.00%-3.25%, as was widely expected.

The dollar was already supported by demand for safe-haven assets after Putin announced he would call up reservists to fight in Ukraine and said Moscow would respond with the might of all its vast arsenal if the West pursued what he called its “nuclear blackmail” over the conflict there.

“Both the Fed projections and the Russia headlines contributed to the dollar’s strength, which was particularly acute against the euro and other European currencies,” said Shinichiro Kadota, a senior FX strategist at Barclays (LON:BARC) in Tokyo.

“Commodity currencies also took a big hit due to the deterioration in risk sentiment.”

The euro weakened to a new 20-year trough of $0.9807, before trading 0.11% down on Wednesday at $0.98265.

Sterling fell to a fresh 37-year low of $1.1221, and last changed hands at $1.12425, a 0.24% decline from the previous session.

Todays Free Forex Signals via Telegram 22 09 2022

The market currently sees 80% odds for a 75 bps rate hike by the BOE, and 20% probably of a half point increase. [0#BOEWATCH]

The Aussie dropped 0.47% to $0.6602 after having touched $0.6583, its lowest since mid-2020. Liquidity in the currency may be thin with Australia observing a public holiday.