Markets Focus on Gaza, Davos and the Inauguration in Washington. Forex Trading USDJPY on BoJ Interest Rates.

In today’s GCI Market Outlook let’s take a look at Forex Trading on NZDJPY, AUDCAD, WTI Crude Oil, and the S&P500.

You may find that technical analysis will be difficult this week with all the fundamentals and economic news.

From the technical side, we are looking at a downtrend on US indices like the S&P500.

The stochastic oscillator is overbought on both the 4-hour and the daily charts.

We may want to wait for the MACD signal line to break the histogram but, the fundamentals may take over.

The new administration will take over today and we honestly don’t know what to expect this week in terms of tariffs and other executive orders.

Expect the unexpected, except volatility.

I encourage you all to watch the inauguration speech as any mention of tariffs or “drill, drill, drill” as he said earlier, will affect the markets.

USD, the Indices, and Crude oil.

One thing missing from the economic calendar is the Davos forum this week, which also always causes volatility.

Donald Trump will be speaking there as well.

We see Canadian CPI this week and we may have technical opportunities after the news as we see price action on AUDCAD at the upper trend line.

The stochastic oscillator is overbought and we see price at resistance which is the 50% Fibonacci level.

Keep in mind, the price of crude will affect this pair.

We have been watching the JPY rollercoaster for months and we finally have an Interest Rate decision Thursday.

The expectation is a rate rise to 0.5%.

If we expect JPY to get stronger, we will look for a weaker or neutral currency with which to pair.

USD might be tricky with the inauguration and we see that NZD is consolidating.

NZDJPY is in a downtrend with price action near the upper trend line and the stochastic oscillator overbought.

That’s all for now.

CFDs and FX are leveraged products and your capital may be at risk.