Yen Suffers on Monday

American and European indices started the new week with small drops although Asia had a rather successful session.

The EURUSD started with a small rise but it seems more like a dead cat bounce. I don’t see a chance for it to develop into something bigger.

A better situation can be spotted with the GBPUSD, where price action suggests the that the false breakout is in place, which would point to a further appreciation of the Sterling.

The USDJPY broke the upper line of the channel up formation, showing us a pure dominance by buyers.

The CADJPY also climbed higher fulfilling expectations from the inverse head and shoulders pattern.

The GBPJPY finally broke from the sideways trend, as you may have expected; to the upside. That brings us a long-term buy signal.

For a look at all of today’s economic events, check out our economic calendar.