The EUR/JPY climbed to 122.78 while the AUD/JPY reached a high at 80.43
Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 02/16/10
Good morning from cold Germany and welcome. Low-yielding currencies like the USD and the JPY fell against a basket of currencies after minutes of the policy meeting from Tokyo. We wish you a successful trading day.
The JPY fell against higher-yielding currencies on speculation that deflation will force the Bank of Japan to continue easing programs for an extended period. The central bank will start holding tomorrow a two-day policy board meeting while expectations persist that they will hold interest rates unchanged at 0.1 percent. After a report yesterday published a broad measure of prices which fell the most than half a century, economists said the bank may be compelled to add credit to the economy later this year. The JPY fell for the first time since the past four trading days against the EUR and the AUD while it reached a high at 63.24 versus the NZD. The EUR/JPY climbed to 122.78 while the AUD/JPY reached a high at 80.43.
The AUD gained to its highest level this month against the USD after the Reserve Bank of Australia let interest rates unchanged. The central bank said in its February meeting that further increases to the benchmark interest rate were likely if the economy improves. According to a survey the RBA will increase the lending rate by 1 percentage point this year. The AUD/USD has reached a high of 0.8943, which was the highest level since the end of January.
Since the beginning of August 2009, the AUD/JPY has been trading above the 76.25 support level. After its cross below the 80.00 around the beginning of February, the pair pulled back from the 76.25 support level for the fifth time. According to our MACD analysis, the market may cross the 80.00 resistance and make further bullish movements.
After touching the support level around 1.2430, the AUDNZD pulled back and reached its resistance around 1.2765 for the second time. The next resistance will be around 1.2825. While the RSI indicator signals an overbought market, the market maybe could rise to the upper resistance level and pull back afterwards.
