Good morning from wonderful Hamburg. The springtime has already begun, but here in Germany the winter seems to persist and as a demonstration it began to snow again. Anyway we hope you will make successful trades and wish you a nice day.
Market review
The JPY increased against the USD on expectations Japanese companies are bringing back earnings overseas before the financial month ends next week. The JPY rose versus 10 of the 16 major currencies as Japanese exporters and investors may have taken profits of its fall to a fivemonth low against the EUR to repatriate assets. Though falls in the USD/JPY could be limited after a Japanese government report showed the nation posted the biggest decline in the history in overseas shipments. That signals a reduction of demand for goods and a weak JPY. The USD/JPY fell 0.5%, after it touched a low at 97.47.
The EUR/USD fell articulately, near the lowest level in a week, after U.S. President Barack Obama said the U.S. currency is “extraordinarily strong” because investors are confident in the economy. The weak EUR could also fall against the GBP before a German report today, where economists say it will show that business confidence dropped to the weakest level in more than 26 years. It would be the fifth day that the EUR/GBP falls, which will be the longest losing stretch since January 9th. The currency pair lost over 2% yesterday after it touched a low of 0.9161 from 0.93773. Similarly the EUR fell against the CAD after it touched a low at 1.6536 by falling almost 200 pips from 1.6734. The EUR/USD fell to 1.3482 after falling over 1% since yesterday.
CHF/JPY
As expected the CHF/JPY continued its bullish phase after it pulled back from the 81.30 support line. The market started the upward phase at the end of January. Now the market is touching the 87.00 resistance line for the third time. It would be a clear sign of further gains if the market breaks through this resistance. The market could stay inside the trend channel.
NZD/JPY
The weak JPY also fell against the NZD, after it crossed the 50.00 resistance level and reached the 56.30. It is the highest price since the beginning of January. The currently day-candle seems to be on a recovery way, but if although the market breaks the 56.30 resistance line it could rise further towards the next possible resistance of 61.60.
