Currency Trading: DailyFX

This morning's chart of the USD/JPY includes the SSI data provided by DailyFX.

The USD/JPY continues to print lower highs and lower lows.

The Euro showed little reaction to the European Central Bank interest rate decision as policy makers held the benchmark interest rate at 1.00% in September, but the slew of data scheduled for the U.S. trade is likely to stoke increased volatility in the exchange rate as investors weigh the outlook for future growth.

During the overnight trade, the IMF warned that Portugal, Italy, and Greece are amongst the countries with the highest risk of unsustainable debt, while also adding that U.K.’s debt to GDP could rise to 90.6 percent in 2015. In turn, the GBPUSD pushed lower overnight, while euro traders shift focus to the ECB rate decision and subsequent comments by ECB President Trichet.

Price action over the past 24 hours has been a bit unusual in our opinion, with risk sentiment dramatically improving, currencies rallying sharply, and global equities racing higher on the back of a decent round of global data on Wednesday.