Nevertheless the ECB decided to take the unprecedented step and lowered the deposit rate to -0.10% negative level. In addition, the key rate was lowered to 0.15%. However, the market reaction was paradoxical. The Eurodollar pair began to grow after a brief decrease that did not fit into any logic.
Turning up above the support level 1.3490, the euro has recovered over a specified level and formed a "bull" candle with the elongated lower shadow. In case of further growth the market closest resistance may become the level 1.3810.
The support level is 1.3500, the resistance level is 1.3720.
If the pair keeps going short, the break above 1.3680 will approve the upward movement continuation to the area 1.3810/50 soon. On the other hand, slipping below 1.3640 should increase the risk of going to the bottom side with the retreat to 1.3580/1.3600.
The Bank of England said that consumer inflation expectations for the next year had fallen by 2.6% in the first quarter - 2.8% in the three months till December. The market participants were focused on the non-farm report to get the further guidance on the U.S. labor market recovery after the ADP data release on Wednesday.
The support level is 1.6700, the resistance level is 1.6900.
We assume the correctional decrease to the level 1.6784. The pair may reverse there and try to test the significant resistance level 1.6820. There we expect a new turn and the next decrease stage to the price levels: 1.6777, 1.6730 and 1.67.
The confrontation was hold mostly at advantage of the U.S. currency, which was supported the "Treasuries" growth and optimism in the stock market. However, by the end of the week the growth of greenback against the yen stalled - partly under pressure from technical factors, but mostly due to a change of situation all the same U.S. government debt market, where bond yields began to decline.
The support level is 101.50, the resistance level is 102.75.
The price pullback to the rising channel lower bound 102.00 is likely to lead to the further price bounce up growth of the U.S. dollar against the Japanese yen. The potential upside target will be the descending trendline 103.20-103.10.