The JPY fell against 15 of its 16 major counterparts after Asian Stocks gained
Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 02/17/10
Good morning to everybody. Welcome to our Daily FX Comment. Today we will report about a strong EUR and expectations about the economic data in the Euro-Zone. Have a nice trading day.
The JPY fell against 15 of its 16 major counterparts after Asian Stocks gained. The MSCI Asia Pacific Index gained 1.7 percent, which was its biggest gain since November 2009. Japans´ currency reached its lowest level in almost two weeks against the EUR after the EU published new plans to push Greece to get its budget under control. The European officials gave Greece four weeks to prove if it can cut its deficits. The EUR/JPY climbed to a high of 124.42, which was its highest level since February 4th. The USD/JPY climbed for a second day to 90.34 after opening the day at 90.14. The EUR/USD gained for a second day after it reached a high at 1.3782.
The GBP gained against the NZD before reports today may show that U.K. jobless claims declined for a third month and the rebound in U.S. manufacturing could accelerate. According to a survey the claims for jobless benefits may fell about 10,000 in January. The GBP pulled back from losses against the NZD and reached a day-high at 2.2390 after it touched a low at 2.2209 yesterday, the lowest level since January 19th. The GBP/USD was nearly unchanged this morning after it climbed more than 130 pips yesterday.
Since February 5th, the EUR/JPY has been trading below its 124.45 resistance line. While the MACD may signalize a bullish market, the Bollinger Bands are moving close together, which could indicate a direction change up- or downwards in the near future. If we see a break trough the resistance level around 124.25 the EUR may show further gains versus the JPY
On January 11th the CHF/JPY started a bearish phase after the RSI indicator signaled an overbought market and touched its upper line. During February, the market entered the bearish Fibonacci fan finally and reached the resistance around 84.65 for the second time. As you can see, the RSI reach the upper resistance again which may be is a signal for a return to the downside.
