The second quarter earnings season has started brightly with the likes of Alcoa, JP Morgan and Citigroup all reporting numbers that were better than expected last week. The good run of form has continued at the start of the week as the Bank of America became the latest Wall Street giant to report forecast-beating numbers this morning, which caused its shares to climb some 4 per cent higher.
The U.S. dollar/Japanese yen (USD/JPY) currency pair has indeed reached a major technical area around 105.55-106.80. As can be seen from the weekly chart, below, this area was previously support and resistance.
With stocks, pound and the yen dominating the headlines in recent weeks, traders haven’t paid as much attention to what still is the world’s most heavily-traded forex pair: the euro/U.S. dollar (EUR/USD) currency pair.