On Tuesday, September the 24th, Democratic House Speaker Nancy Pelosi launched a formal impeachment inquiry against President Donald Trump after new allegations arose linking Trump’s actions to his own political benefit.
The new allegations are concerning a phone call that took place in July of this year between President Trump and the President of Ukraine Volodymyr Zelensky.
During the phone call, President Trump asked the Ukrainian President to "look into" an investigation concerning Hunter Biden - son of former Vice President Joe Biden. Joe Biden is the Democratic rival to Trump in the upcoming 2020 election.
At the time of the call, President Zelensky was awaiting $400 million in U.S. military aid, little did he know that Trump placed the aid on hold. Trump has confirmed this but stated that it was out of frustration that the European nations weren’t contributing enough to the country’s fight against Russian-backed separatists.
A rough transcript of the phone call has been released that shows Trump mentioning Biden at least 8 times in the phone call and although he mentioned that the US "does a lot for Ukraine" he doesn’t outright say that future aid to the county depends on Zelensky’s cooperation.
Lawmakers are still waiting for additional information regarding Trump’s actions. The White House mentioned that they may release the details of the whistleblower’s complaint, related to the call, this Thursday the 26th.
Trump who has denied any wrongdoings and has called these new developments on twitter as "A Total Witch Hunt!" as well as "PRESIDENTIAL HARASSMENT!". In one of his last tweets, he even went as far to say "Will the Democrats apologize after seeing what was said on the call with the Ukrainian President? They should, a perfect call - got them by surprise!"
At the initial impeachment announcement, the market had a bearish reaction, but pairs with the USD soon recovered on upbeat New Home Sales that were released today at 713K ahead of the 660K forecast and previous fact 666K.
USDJPY has experienced a nice day of growth, currently trading at 107.736. On a 4HTF Parabolic SAR has reversed up. The price is entering the Ichimoku Cloud, Lagging Span getting ready to intersect the price chart and the Base and Conversion line are heading towards each other for a Golden Cross.
Long positions look to be more favorable at this time with target areas first at Leading Span A resistance 108.045, then September high at 108.477 and then at further resistance 108.892.