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Technical Analysis – EURJPY failed to rise above cloud

Posted on April 16, 2014 at 9:37 am GMT

After breaking key resistance at 141.00, EURJPY upside momentum increased on the 4-hour chart and it penetrated into the cloud. Resistance was found at 141.75 at the top of the cloud. The stochastic is overbought so the pair will likely make a correction lower after the recent rally. Support is found at 141.30 and 141.00. A break below support at 139.95 would threaten the short term bullish scenario. A successful attempt to move out of the cloud would pave the [..]

Technical Analysis – USDJPY bullish above 102.00

Posted on April 16, 2014 at 8:25 am GMT

USDJPY recovered the key 102.00 level after a rally from a low of 101.50. The short-term outlook is bullish on the four-hour chart as the pair has risen above the tenkan-sen and kijun-sen lines and the RSI is now above 50 and rising. The pair remains bullish above 102.00 but a break below this important support level would target next support at 101.70 (cloud bottom) and then 101.50 before reaching 101.31 (April 11 low). A key barrier to the upside [..]

Technical Analysis – EURUSD pauses decline

Posted on April 16, 2014 at 7:42 am GMT

EURUSD fell after having failed to close above the key 1.3900 level. The pair hit a high of 1.3904 on April 11, which is the 78.6% Fibonacci retracement level of the decline from March 13 (1.3966) down to the April 4 low (1.3671) and is currently at the 50% retracement level. While the market is looking short on the daily chart, there are no clear signals of a downtrend yet. The pair remains supported by the 20-day moving average. The [..]

Asian Session – Chinese growth slightly better-than-expected; risk sentiment hurts yen

Posted on April 16, 2014 at 6:38 am GMT

The major news of today’s Asian session was that China’s GDP growth for the first quarter slightly exceeded expectations. This boosted optimism about global economic growth prospects and helped risk assets. Chinese growth came in at a 7.4% year-on-year pace for the first quarter of the year, which represented a slowdown from the previous quarter’s growth rate of 7.7% but which beat expectations of a 7.3% rate expected by economists. This was welcome news as many in the market fear [..]

European Session – Dollar supported by higher US consumer price data

Posted on April 15, 2014 at 1:46 pm GMT

The dollar was strong against the euro and held steady against the yen. The pound rebounded after UK inflation data caused a brief dip. The euro remained under pressure after ECB President Mario Draghi’s dovish weekend comments warning against a firmer currency. The euro was down 0.10% to trade at 1.3801 by 13:00 GMT. There was a mix of economic data from the Eurozone today. German ZEW releases showed the current situation rising unexpectedly to 59.5 and the expectations component [..]

Forex News – UK inflation remains below BOE target at 4-year lows

Posted on April 15, 2014 at 10:39 am GMT

The headline UK inflation rate for March was released today, indicating a drop to the lowest level in four years. This marks the third consecutive month inflation has been below the Bank of England’s 2% target rate. Lower fuel and food prices were the main factors pushing the consumer price index (CPI) down to 1.6% year-on-year, the lowest since October 2009. This was in line with expectations but lower from the previous reading of 1.7% for the February year-on-year rate. [..]

Technical Analysis – USDJPY bearish below 102.00

Posted on April 15, 2014 at 8:39 am GMT

Resistance at the key 102.00 level has proven to be strong for USDJPY. After testing this level the pair fell to find support at the kijun-sen and tenkan-sen lines just above 101.65 on the 4-hour chart. RSI is turning bearish and is below the 50 line. Further bearish momentum in USDJPY will target support at 101.50 and then 101.31. Alternatively, a rebound from current levels will see the pair target the 102.00 resistance level. A sustained break above this level [..]

Technical Analysis – GBPJPY neutral but above cloud

Posted on April 15, 2014 at 7:48 am GMT

GBPJPY retreated from a recent rally to 173.12 hit on April 3 to trade just above the key 169.00 level. The trend has been neutral since the beginning of March although the market remains above the Ichimoku cloud and above its 100-day moving average, which are signs of bullish sentiment. Technical indicators are currently in neutral territory, with the RSI hovering around 50 and the stochastic just leaving oversold territory. MACD has just crossed above the zero line. A move [..]

Asian Session – US dollar keeps gains following strong retail sales

Posted on April 15, 2014 at 6:21 am GMT

The dollar maintained its overnight gains, trading around 1.3815 against the euro, while a challenge of the 102 level against the yen was not successful, leaving it around 101.88. The pound held above the 1.67 level against the dollar at 1.6715, following disappointing British Retail Consortium figures. The announcement of strong retail sales figures for March on Monday was a major factor in boosting both the dollar as well as stocks. Not only were retail sales during March stronger than [..]

Forex News – Strong US Retail Sales for March help boost dollar

Posted on April 14, 2014 at 2:01 pm GMT

News that retail sales rose a higher-than-expected 1.1% month-on-month rate during March was welcome news for the US consumer. Economists had expected the month-on-month increase to be 0.8%. Adding to the good news was the prior month’s substantial revision from 0.3% to 0.7% month-on-month. It was the strongest month-on-month increase for retail sales in 1 ½ years. Increases in furniture purchases and clothing stores were particularly encouraging. Some economists also attributed the strength in the figures to pent-up demand as [..]

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