Potential exists for a USDJPY reversal and strength up towards 8800-9000 before the longer term downtrend resumes.

The EURUSD decline from 13340 may be unfolding as a series of 3 wave declines (double zigzag). The next opportunity will be from the short side against 12920. 12470 and 12200 are targets. 12780 and 12820 are resistance areas.

The Canadian dollar pared the overnight decline and is the best performing currency against the greenback on Wednesday, while the Japanese Yen weakened across the board following the rebound in risk sentiment.

The AUD/USD is finding support as risk appetite has returned as concerns over the European banking system has started to fade. An RBA rate hold has left price action at the mercy of broader trends but that could change tonight with the employment report scheduled for release at 01:30 GMT. Therefore, we could see the pair confined to current patterns with traders reluctant to take significant positions ahead of the event risk, making the pair an ideal scalping target.

After becoming the first G-7 member to increase rates since the global financial crisis, the Bank of Canada hiked rates another twenty five basis points in September to 1.00 percent from 0.75 percent the month prior which was widely expected. At the same time, policy makers said that financial conditions are “exceptionally stimulative.” In turn, the Canadian Dollar rallied against all major currencies and extended its advance after the Ivey Purchasing Managers Index for the month of August topped expectations. The loonie may extend its advance against the greenback during the North American trade as risk appetite looks to regain its footing.

Gold continues to move up to near the all-time high of 1265.10.

The EUR/AUD printed a new 21-year low yesterday.

All major currencies were up against the U.S. dollar overnight, with the British pound leading the way, climbing some 0.71 percent ahead of the Bank of England interest rate decision.

The greenback weakened across the board, with the EUR/USD paring the sharp decline from the previous day to reach a high of 1.2732 during the overnight trade, and the reserve currency is likely to face increased volatility throughout the day as the Federal Reserve is scheduled to release its Beige Book Economic report at 18:00 GMT.