Good morning from beautiful Hamburg and welcome to a new Forex week. Hopefully we get only positive economic data and news. We hope you enjoyed your weekend and wish you a prosperous trading day.
Market review
On Friday a U.S. consumer confidence report of the University of Michigan showed its highest level since the bankruptcy of Lehman Brothers Holding Inc. pushed the world’s economy deeper into the recession. Supported by better than expected U.S. economic data, the USD increased and let the EUR slid under its 1.3000 level in the early Tokyo trading. Speculations that policy disagreements within the European Central Bank will undermine efforts to help the region’s economy to recover incriminates the EUR. Today a U.S. report may show a gauge of the economy’s direction over the next three to six months.
On Friday the Bank of Japan cut its economic evaluation in seven of the country’s nine regions. A speaker of the BoJ said the regional economy has been “deteriorating significantly” and lowering its overall assessment in a quarterly report. The GBP/JPY as well as the USD/JPY fell about 0.75 % and 0.40 % at early Tokyo trading.
The AUD and NZD weakened likewise on concern disagreements among European policy makers will reduce investors risk appetite to buy higher-yielding currency.
GBP/JPY
With the beginning of April, the currency pair crossed its both old resistance lines at 145.86 and 142.92. Since its opening today, the GBP/JPY gets under pressure and crossed its support at 145.86. In contrast to the last week a widening of the Bollinger Bands does not show a trend reversal formation. Also the Momentum Indicator declined heavily and it seems that the next support could be at 142.92.
NZD/JPY
On April 10th we can see clearly that the Bollinger Bands contracted. This could implicate a strong bearish movement inside a trendchannel. While it seems that the NZD could stop its downward trend and the MA Oscillator supports by increasing near to its zero level, the Bollinger Bands could contract again. If the currency pair could cross the bearish trend channel it could be a signal for a trend reversal.
