Yen Higher on Falling Treasury Yield and Commodities, Dollar Supported While the mid-week pull back in dollar was sharp, the greenback did manage to hold on to key near term levels against most major currencies and staged a strong rebound towards the end, with support from sharp fall in commodity prices on Friday. There was some optimism that the global economy is getting out of recession, triggered by unexpected expansion in the Q2 GDP in Germany and France. However, such optimism was indeed not quite reflected in the financial markets as MSCI world index just managed to close at 1063.98, slightly above 1063.2 a week ago. Indeed, the divergence in emerging market stocks, the sharp reversal in commodities and the broad based strength in Japanese yen are arguing that risk aversion might be coming back. Full Report Here... |
GBP/JPY Weekly Outlook Last week's development suggests that a short term top is at least formed at 163.05 with bearish divergence conditions in 4 hours MACD and RSI. Recovery from 155.96 might have completed at 160.34 already and initial bias is mildly on the downside this week. Break of 155.95 will bring fall resumption to 153.81 support first. On the upside, above 158.40 will turn intraday outlook neutral again and argue that fall from 163.05 is not ready to resume yet. Some more recovery could be seen in such case but break of 163.05 is needed to confirm medium term rally is still in progress. Otherwise, risk of another fall remains. Read more... All Technical Outlook Reports | Weekly Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | CADJPY | 86.41 | 90.17 | -376 | -4.35% | | GBPJPY | 156.99 | 162.74 | -575 | -3.66% | | AUDJPY | 79.01 | 81.69 | -268 | -3.39% | | USDJPY | 94.91 | 97.55 | -264 | -2.78% | | EURJPY | 134.80 | 138.35 | -355 | -2.63% | Currency Heat Map Weekly View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | |
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