Central Banks are eading the news today ,starting with the BoE Bailey, then we see BoJ governor Ueda and FED chair Powell also speaking.

As we have seen, all central banks release their latest policy details in the last 2 weeks, so we don't really expect any major shift in direction from them.

However, with the UK raising rates by a shock 50bps the question, we ask ourselves: is it to the detriment of the economy?

Although Sterling has remained strong until we saw last weeks bearish candle and today we have seen a break of last weeks low - Could this be the start of a repricing of sterling?

The technicals are pointing at a lower price, should price break the ascending trend line support the next leg lower could be significant.

The JPY continues to slide and this has definitely been the currency to sell over the last coupe of months.

The depreciation is usually aligned to the appreciation of US10Y. However, as US10Y soften, we are still seeing the market offloading JPY.

The Japanese finance minister has been fairly vocal in the last couple of weeks suggesting that the one directional movement of JPY will see the BoJ respond to these excessive moves if required.

TIp from our analyst: Although no mention of the levels were made, I would suggest 145 area where we saw a similar move from the BoJ back in October.

Therefore, we see reward to the downside on JPY cross pairs, the key will be to wait for confirmation.

Intervention will be a sudden sharp drop, the question will be if the market buy into and prevent the intervention from fully working. Risk and trade management will be pivotal in securing profits.

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