Yen Crosses Higher Following Rally in Asian Stocks Yen crosses are generally higher as the week starts as Asian equities are broadly higher on optimism of global recovery, following last week's upside break out in US stocks. Strength in developed markets are more apparent as seen with Nikkei up 3.3% to 10581 and is set to make new high above 10630 this week, and target 11691 key resistance later. Crude oil also remains firm above 74 level on recovery in demand. Dollar pares some of last week's lost against major currencies, with the help of rally in USD/JPY, but strength is so far mild. Full Report Here... |
Central Banks Forecasts Update The sizable policy stimulus since 4Q2009 seems to have finally put an end to the worst economy recession after Great Depression. In recent months, macro-economic data have improved and sentiments have turned robust. The market begins to talk about exit from the easing cycle. The majority of analysts in the street expect RBA will be the first central bank to increase its policy rate while the BOJ and the SNB will probably be the last ones. For the rest, the first rate hike will begin in the second half of next year. Full Report Here... |
Trade Idea: GBP/USD - Sell At 1.6580 Despite rising to 1.6625 last Friday, the retreat from there partly due to cross-selling in sterling suggests the rebound from 1.6275 has possibly ended there and consolidation with downside bias is seen for test of 1.6419 support, however, it is necessary to see a break of 1.6375 support to add credence to this view and extend weakness to 1.6320/25 later. Full Report Here... Trade Idea: USD/CHF - Sell At 1.0685 Although the greenback retreated to 1.0562 last Friday in New York session, dollar found renewed buying interest above recent low at 1.0553 (our long entry at 1.0560 could not get a fill) and the currency pair rebounded from there since. Price just tested the Tenkan-Sen and further consolidation above 1.0553 would take place and whilst correction to 1.0660 (38.2% Fibonacci retracement of 1.0834 to 1.0553) cannot be ruled out, offers are likely to appear around 1.0685-94 (previous resistance and 50% Fibonacci retracement level) and bring another decline later. Below 1.0553 would extend weakness towards 1.0490/00, however, loss of downward momentum would keep price above 1.0440/50 (just below 50% projection of 1.1742 to 1.0592 measuring from 1.1026 at 1.0451). Full Report Here... Trade Idea: EUR/USD - Buy At 1.4265 As euro has continued to trade narrowly after rallying to 1.4377 last week, suggesting further consolidation below this level would take place and pullback to the Tenkan-Sen (now at 1.4293) is likely, however, the Ichimoku cloud top (now at 1.4239) should limit downside and the Tenkan-Sen (now at 1.4223) would hold, bring another upmove later. Above said resistance would extend towards 1.4410/15, however, the single currency should falter below recent 2009 high of 1.4448 and bring another retreat later. Full Report Here... Trade Idea: USD/JPY - Buy At 94.00 Dollar's rebound after last week's fall to 93.42 suggests a temporary low has been formed there and consolidation with upside bias remains for test of the Ichimoku cloud bottom (now at 95.05), then the resistance at 95.30, break there would add credence to this view and bring correction of recent decline to 95.61 (50% Fibonacci retracement of entire fall from 97.79 to 93.42), however, the thick Ichimoku cloud suggests strong resistance would appear near the upper Kumo (now at 95.99) which should put a cap on the currency pair for the time being. Full Report Here... |
EUR/JPY Daily Outlook Daily Pivots: (S1) 133.59; (P) 134.53; (R1) 136.15; More. EUR/JPY's rebound from 132.17 extends further today and at this point, intraday bias remains on the upside as long as 135.04 minor support holds. Further rally might still be see. However, as such rebound is treated as correction to fall from 138.70 only, upside should be limited below 137.83 resistance and bring fall resumption. Below 135.04 will turn intraday outlook neutral first. Break of 132.90 will flip intraday bias back to the downside and bring fall resumption towards 127.08 key support next. Read more... All Technical Outlook Reports | Daily Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | AUDJPY | 79.52 | 78.76 | +76 | +0.96% | | NZDJPY | 64.79 | 64.37 | +42 | +0.65% | | CADJPY | 87.80 | 87.27 | +53 | +0.60% | | USDJPY | 94.94 | 94.39 | +55 | +0.58% | | EURAUD | 1.7069 | 1.7158 | -89 | -0.52% | Last Updated: Aug 24, 08:05 GMT Currency Heat Map Daily View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | Last Updated: Aug 24, 08:05 GMT |
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