As mentioned earlier in our previous report that a notable gap would be seen in the JPY pairs, and so it did where the Japanese yen lost nearly 100 points against the major currencies as soon as the markets opened on Friday morning.
The Japanese economic indicators were out early this morning as well where the consumer prices increased by 1.2%, hence indicating a positive change in the consumer spending power. The Eur/Jpy is currently trading at 144.05 where it has gained more than 110 points from its Friday’s closing level. The pair is extremely bullish where it seems to be targeting its 6 year highs once again.
Euro’s Up Again
The euro on the other hand witnessed a surge against the U.S. dollar on Friday, where it has moved above the critical resistance level of 1.3721 and is currently trading at 1.3742 in the latter part of the Asian session. The pair is free to move above this level as there is no such strong resistance near this point, where it may try to go as high as 1.3805 that is its last week’s top.
However, a move below 1.3714 could invite the sellers in the market where selling would have greater volume if the price moves below the 1.3690 pivot point level of Friday.
Those who followed our analysis for the GBP/USD in our previous report must be savoring from their profitable trades right now, where the British pound that made an important move on Tuesday further gained today in the Asian session since it closed in the bullish zone on Tuesday. The pair managed to gain around 70 points today where it is hovering at the 1.6441 area, and is targeting last week’s high of 1.6480.
A move below the pivot point level of 1.6412 could take it down to test its next support levels of 1.6399 and 1.6387 which could be considered as a bearish correction of around 23 to 38.2% on Fibonacci retracement scale. The buyers can feel safe with their long positions as long as the pair is above the 1.6366 support level.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org