Key Highlights
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Japanese yen tumbled against most currencies including the Euro and the US dollar, and it looks like it might continue to head lower in the near term.
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Australian AIG Performance of the Mfg. Index representing business conditions in the Australian manufacturing sector released by the Australian Industry Group managed to post a reading of 48.0 in April 2015, compared to last reading of 46.3.
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Japanese National Consumer Price Index released by the Statistics Bureau registered an increase of 2.3% in March 2015, compared to the last rise of 2.2%.
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Japanese National CPI Ex Food, Energy increased by 2.2% in March 2015, compared to March 2014.
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Japanese Unemployment Rate which comes from the Ministry of Health, Labor and welfare and published by the Japan Statistics Bureau posted a rate of 3.4% in March 2015.
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Japanese Securities investment, released by Ministry of Finance representing bonds issued in a domestic market by a foreign entity in the domestic market’s currency and detailing the flows from the public sector excluding Bank of Japan came in at ¥185.3B, compared to the last ¥432B.Japanese Foreign investment in Japan stocks i.e. the net data shows the difference of capital inflow and outflow was also published, which was at ¥821.0B, compared to the last reading of ¥595.2B.
USDJPY
The US Dollar was one of the worst performers recently, but only after the Japanese Yen. The USDJPY pair traded higher recently after finding buyers around the 118.40 support area. There were a couple of bearish trend lines formed on the 4-hour chart of the USDJPY pair, which were breached to open the doors for more gains in the near term. Moreover, the pair is now well placed above the 100 and 200 simple moving average, which is a bullish sign in the near term and might encourage buyers.
Intraday Support Level – 119.20
Intraday Resistance Level – 120.20
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Overall, as long as the pair is above the 100 SMA (4H) it might continue moving higher.
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A break below the same could ignite more losses in the short term.
On the upside, a break above the 120.20 level could take the USDJPY pair towards 120.80.
EURJPY
The Euro performed well recently not only against the US dollar, but also against the Japanese Yen. The EURJPY pair tested the 134.00-30 resistance area, and looks set for more upsides in the short term. There is a bullish trend line on the downside sitting around the 200 simple moving average on the 4 hour chart. If the pair corrects lower from the current levels, then initial support can be seen around the 38.2% fib retracement level of the last leg from the 127.85 low to 134.31 high.
Intraday Support Level – 132.50
Intraday Resistance Level – 134.30
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Buying dips around the 38.2% fib level looks like a good option.
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A break below the same might call for losses in the short term.
If EURJPY pair continues to move higher, then a break above 134.30 could take it towards 135.00.
Simon Furman
Think Global - Act Local
Simon Furman is one of the best financial analyst with 27 years of trading experience
AUDUSD Remains Buy On Dips
Aussie dollar was one of the best performing currencies as it traded higher against most major currencies, and looks set for more gains in the short term.
USDCHF At Risk Of A Major Break
US dollar dived sharply against the Swiss franc and other major currencies, as sellers managed to gain strength exposing a major break in the USDCHF pair in the near term.
US Dollar Poised For Further Rise Versus Yen
Japanese yen once again failed to hold the ground and lost all the gains against currencies like the US Dollar and the Euro, which exposes it for more declines in the near future.
NZDUSD Gains Favored As It Holds Key Lows
New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
US Dollar Might Continue Trading Lower
US dollar traded sharply lower recently against a basket of currencies as the recent economic releases in the US missed the mark and ignited a correction phase in the US dollar in the short term.
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