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The JPY rose to 126.96 versus the EUR

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 01/22/10


Good morning from Hamburg and welcome to our last Daily FX Report of this week. The JPY gained versus all of its 16 major counterparts and reached a nine month high against the EUR. We wish you a relaxing weekend and much success in trading today.

Market review

The EUR dropped to the lowest level in almost nine month against the JPY on concerns that a U.S. proposal to restrict risk trading at financial institutions will spur many investors to sell higher yielding assets. The JPY rose to 126.96 versus the EUR. This is a weekly loss about 2.7% for the EUR. Furthermore the JPY could climb against all of its other most traded counterparts as Asian stocks joined a global equity slump which increases the demand for the JPY as a refuge. The USD fell to 90.01 versus the JPY. Also the EUR gained against the USD and reached 1.4127. In consideration of the whole week, the EUR lost versus the USD 1.8%.

The USD weakened for a third weekly loss against the JPY as the U.S. President Barack Obama called for limiting the size and trading activities of financial institutions as a way to reduce risk trading and prevent another financial crisis. The suggestion will be a part of an overhaul of regulations and would stop banks from running proprietary trading operations.


After eight days in January 2010, the GBP recovered from its bearish trend against the AUD and started a bullish trend channel. Recently, the currency pair could cross the important Fibonacci Retracement level at 1.7907 (61.8%) and it seems that the GBP will continue its upward movement. Whenever the prices crossed its Fibonacci level in the trend channel, the GBP could continue its trend.


With the beginning of the New Year, the EUR has been trading in a downward trend versus the GBP. Yesterday, the currency pair could recover at its Pivot point (0.8677) and the prices started a pull back. The MACD indicator may support a continuing bullish trend for the EUR with a breakthrough by the signal line from below. Next resistance could be around 0.8807. 

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