Euro FX Pairs See Fresh Highs and Lows Amid USD/JPY Price Action

The EUR/USD pair experienced fresh highs and the EUR/JPY pair touched fresh lows in a big week for the FX market, but most of the drive came from the USD/JPY pair. The prior week's ECB meeting saw Christine Lagarde take a dovish tilt, which caused EUR/USD to stutter after breaking down from a bear flag formation. However, last week started with an open door for sellers, but they seemed disinterested in continuation as short-term price action formed a falling wedge ahead of the FOMC meeting. This led to a bullish breakout when Kevin Warsh steered away from any rate hike announcements.

The market looked at this in a webinar before the FOMC meeting, and it was predicted that a topside break above 1.1500 would be significant for EUR/USD. The USD/JPY pair drove most of the action with its price movements.