It is the start of the new year and that has the markets a little more awake with some active trading ranges in some of the major currency pairs.
The EUR and the GBP moved lower vs the USD in early European trading helped by some weaker inflation data and warmer weather perhaps which has some inflation fears abating. However, support was found in the EURUSD against the midpoint level of the 2022 trading range, and that has led to a bounce higher in the early US session. The GBPUSD is following the lead of the EURUSD.
That puts into focus upside corrective resistance targets in those pairs to see if the sellers can maintain their early edge today.
For the USDJPY, the path was toward a lower dollar for it in the Asian session, which has now reversed higher. The move back to the upside has taken the pair back above a swing low going back to December 20 (and yesterday too) near 130.556. That level will be eyed in trading today for short-term bias defining clues.
