Market review
Yesterday the USD fell for a fourth day against the JPY after Asian stocks extended a global recession, which spurred demand for the Japanese currency as a refuge. The Nikkei 225 dropped 2.6 % while the MSCI Asia-Pacific Index of regional shares fell 2.4 %. Also the S&P 500 slid 2.7 % after the U.S. Commerce Department said retail sales unexpectedly fell 0.4 % in April, dropping a revised 1.3 % in March. Yesterday the USD and the JPY gained versus higheryielding currencies before a U.S. report today, which may show Initial U.S. jobless claims climbed to 610,000 in seven days, ended on May 9th from 601,000 a week earlier.
The USD/JPY fell for a fourth day by touching a low at 95.15. It was the lowest level since March 20th but today in the Asia trading session the pair pulled a little back and trades currently around 95.50. The JPY rose to 56.18 against the NZD after opening at 58.44 yesterday. The EUR/JPY fell also by touching a low at 129.35 after ECB council member Marko Kranjec said in an interview in Ljubljana: “we don’t exclude the purchase of first-class corporate bonds and shortterm securities such as commercial paper in the central banks’ asset-purchase program. Today the EUR/USD fell for a second day to 1.3560 after a day-opening of 1.3600.
EUR/AUD
Since the end of February, the EUR/AUD has been moving inside a bearish trend channel. It is the third time that the market is touching the upper line of the channel. If the currency breaks the upper line of the channel, it may start rebounding towards the middle and upper Bollinger band.
USD/JPY
As you can see the USD/JPY is trading on the third support line of the weekly Pivot points. Additionally the market is very far away from the simple MA and the MA Oscillator gives also the first sign for an oversold market. If the pair doesn’t break the Pivot point S3 (W) at 95.13, it may start a recovery phase towards the upper Pivot points.
