Good morning. We have reached again the end of the week and we were repeatedly able to see a comparative volatile FOREX market. Anyway, we hope you had a great trading week and wish you a nice weekend.
Market review
The JPY climbed for a second day versus the USD and increased against the GBP on speculation that Japanese companies bring back earnings on overseas assets. The JPY gained also against the EUR before a report may show that consumer prices in the Euro-Zone dropped 0.6 percent in July, according to a survey. The GBP/JPY fell to 157.70 after opening at 158.33. It fell 3.2 percent this week after it opened at 162.78 on Monday. Wednesday was the only day this week the USD/JPY didn’t fall. The second most traded currency pair opened the week at 97.56 and trades currently around 95.15. The EUR/JPY fell almost 100 pips just today after it dropped to 135.54 with a day-opening of 136.46.
The AUD climbed to its highest level since September 2008 after RBA Governor Glenn Stevens said today it will be appropriate to increase interest rates in the future. The AUD/USD pulled back to a doji as it touched a high of 0.8478, which was the highest level since September 22nd 2008. The NZD/USD reached also a record high after Asian stocks gained. It reached a high of 0.6831, which was the highest peak since September 26th 2008.
USD/JPY
Since the end of March the USD/JPY has been moving inside a downward trendchannel. After the currency pair broke out of the channel in August, the market touched the upper Bollinger band and pulled back to the support level around 95.00. If the market will breaks through this support level and enters back to the channel, it may fall towards the lower line of the Bollinger bands.
GBP/USD
During the past five months, the GBP/USD has been trading along a bullish trend line with a support at around 1.60 and a resistance level at 1.6660. After crossing the 1.6660 resistance the market reached a high of around 1.70 and pulled back to a level near the upward trend line. If the market breaks the bullish trend line, it may fall down towards the 1.60 support. If not, it could increase back towards the high around 1.70.
