Commodity Currencies Shone While Dollar Ended the Week Mixed Markets headlines was dominated by Federal Reserve's surprised discount rate hike last week and dollar was given a brief boost. However, the greenback failed to sustain gain and ended the week mixed. Indeed, markets were overwhelmed by persistent strength in Australian dollar and Canadian dollar, as well as general weakness in European majors and Japanese yen instead. While markets' focus has temporarily moved away from Greece, it's believed that fiscal problem in Eurozone and UK continued to be the major force driving funds to countries with better fiscal health like Canada. In addition, Fed's discount rate hike further affirm the view that "some' countries will start/continue to exit from stimulus measures and some, including Eurozone, UK and Japan will likely lag behind. This view triggered selling of yen against commodity currencies as well as dollar to seek "yield" and sent respective yen crosses sharply higher. These two factors will likely continue to be the major forces for the rest of Q1 and would probably continue in Q2. Full Report Here... |
USD/JPY Weekly Outlook USD/JPY's rise from 88.57 accelerated to as high as 92.14 last week. The strong break of 91.26 resistance indicates that fall from 93.74 has completed with three waves down to 88.57 already. The corrective structure in turn argue that rise from 88.57 is probably resuming the rally from 84.81. Initial bias remains on the upside this week and further rise should be seen to retest 93.74 resistance next. Below 91.18 minor support will turn intraday bias neutral and bring consolidations. But break of 90.56 support is needed to indicate that rise from 88.57 is finished. Otherwise, another rise is still in favor. Read more... All Technical Outlook Reports | Weekly Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | AUDJPY | 82.20 | 79.84 | +236 | +2.87% | | CADJPY | 88.04 | 85.65 | +239 | +2.71% | | GBPAUD | 1.7216 | 1.7683 | -467 | -2.71% | | GBPCAD | 1.6075 | 1.6487 | -412 | -2.56% | | NZDJPY | 63.92 | 62.73 | +119 | +1.86% | Currency Heat Map Weekly View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | |
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