G7 Comments Support Yen, G20 to discuss on Weekend
U.S. Dollar Trading (USD) theJapanese Yen once again dominated the headlines and moved most of the othermajors with EUR/JPY dragging the EUR/USD higher. The G7 downplayed the recentmoves in the Yen as just an overvalued currency returning to normal values. They didsuggest the recent comments about Yen targets like Y95-Y100 was not helpfulwith such universal guidance from Japan counter to the G7 rules. Looking ahead,January Retail Sales forecast at 0.1% vs. 0.5% previously. Also US TreasurySecretary Speaks.
The Euro (EUR) the EUR/USDsoared chasing the EUR/JPY higher and supported by the uptrend in the EUR/CHF.The major broke above 1.3410 and quickly moved to 1.3475 before fading back with some easing in theEUR/JPY. The EUR/JPY continued to be the most volatile in the market moving ina 200 pips but in a wild fashion up down up and finally down again reacting tocomments out of the G7 and G20. The Sterling (GBP) GBP/USD found support under 1.5600 and surged onGBP/JPY buying and EUR/GBP selling in the US session. The outlook is negativeas major supports have been broken and the rallies have been sold into lately.Only a move above 1.5800 would stem the negativity towards Cable in the mediumterm. Lookingahead, BOE Governor King speaks and BOEInflation Report released.
The Japanese Yen (JPY) USD/JPY shot above Y94 on the US treasury commentsin Asian yesterday before falling all day and catching the market long ahead ofthe BOJ event risk tomorrow. So far in Asia Wednesday we have fallen throughY93 and still searching for support as profit takers are joined by short termspeculators. Australian Dollar (AUD) the Aussie reversed aggressively yesterday afterfinding support at fresh trend lows near 1.0230. The short squeeze hascontinued so far in Asia with stops being hit up to 1.0360. February Westpacconsumer sentiment showed a surge of 7.7% vs. 0.6% previously and surprised themarket. The negativity seen over the last two weeks has been linked to largeEUR/AUD buying but this has slowed in recent sessions and last night reversedfrom 1.3100 resistance.
Oil & Gold (XAU) Gold stabilized at $1643 support before bouncing to$1650 with reports of a North Korean Nuclear test supporting the alternate safehaven. OIL/USD broke resistance at $97.00 and heading towards $98 a barrel the 2013highs.
Pairs to watch
USD/JPY – Profit takingto continue or trend buyers to support ahead of BOJ tomorrow?
Daily Outlook 00:00 GMT 13-FEB-2013
G7 Comments Support Yen, G20 to discuss on Weekend
U.S. Dollar Trading (USD) theJapanese Yen once again dominated the headlines and moved most of the othermajors with EUR/JPY dragging the EUR/USD higher. The G7 downplayed the recentmoves in the Yen as just an overvalued currency returning to normal values. They didsuggest the recent comments about Yen targets like Y95-Y100 was not helpfulwith such universal guidance from Japan counter to the G7 rules. Looking ahead,January Retail Sales forecast at 0.1% vs. 0.5% previously. Also US TreasurySecretary Speaks.
The Euro (EUR) the EUR/USDsoared chasing the EUR/JPY higher and supported by the uptrend in the EUR/CHF.The major broke above 1.3410 and quickly moved to 1.3475 before fading back with some easing in theEUR/JPY. The EUR/JPY continued to be the most volatile in the market moving ina 200 pips but in a wild fashion up down up and finally down again reacting tocomments out of the G7 and G20. The Sterling (GBP) GBP/USD found support under 1.5600 and surged onGBP/JPY buying and EUR/GBP selling in the US session. The outlook is negativeas major supports have been broken and the rallies have been sold into lately.Only a move above 1.5800 would stem the negativity towards Cable in the mediumterm. Lookingahead, BOE Governor King speaks and BOEInflation Report released.
The Japanese Yen (JPY) USD/JPY shot above Y94 on the US treasury commentsin Asian yesterday before falling all day and catching the market long ahead ofthe BOJ event risk tomorrow. So far in Asia Wednesday we have fallen throughY93 and still searching for support as profit takers are joined by short termspeculators. Australian Dollar (AUD) the Aussie reversed aggressively yesterday afterfinding support at fresh trend lows near 1.0230. The short squeeze hascontinued so far in Asia with stops being hit up to 1.0360. February Westpacconsumer sentiment showed a surge of 7.7% vs. 0.6% previously and surprised themarket. The negativity seen over the last two weeks has been linked to largeEUR/AUD buying but this has slowed in recent sessions and last night reversedfrom 1.3100 resistance.
Oil & Gold (XAU) Gold stabilized at $1643 support before bouncing to$1650 with reports of a North Korean Nuclear test supporting the alternate safehaven. OIL/USD broke resistance at $97.00 and heading towards $98 a barrel the 2013highs.
Pairs to watch
USD/JPY – Profit takingto continue or trend buyers to support ahead of BOJ tomorrow?
AUD/USD – MajorResistance at 1.0380 approaching
TECHNICALCOMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.3325
1.3430
1.3445
1.3475
1.3501
USD/JPY
92.17
92.61
92.95
93.27
94.41
GBP/USD
1.5506
1.5547
1.5695
1.5737
1.5845
AUD/USD
1.0293
1.0313
1.0360
1.0361
1.0385
XAU/USD
1625.00
1643
1651
1663
1684
OIL/USD
95.00
97.00
97.60
98.00
100.00
By Anthony Darvall (TonyD)
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
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