• Home ::
• Technical ::
• Analysis Reports ::
• Daily Forex Technical Report

• Send
• Print
• Add To
• Rss

Mid−Day Forex Technical Report − Yen Sold off again after US Durables

Fri, Jul 25 2008, 13:12 GMT
by ActionForex.com Team

ActionForex.com

Action Insight Mid-Day Report

Yen Sold off again after US Durables

US Jun durable goods orders came in much stronger than expected. Headline orders rose for the second consecutive months by 0.8% versus expectation of -0.3% fall. Ex-transport orders is even more impressive, rising strongly by 2.0%, largest monthly increase since last Dec, versus expectation of -0.2% fall. The Japanese yen reversed earlier gains this week and is sold off sharply across the board as investors' sentiment flipped to positive again.

Technically speaking, in spite of earlier pull back, recent rise is yen crosses remains intact. Even though GBP/JPY retreated sharply before, it's still being contained by mentioned 211.53 near term support. More upside is now expected in yen cross to retreat this week's high.

Dollar recovers mildly but remains bounded in range against major currencies. U of Michigan consumer sentiment final reading and new home sales will be featured next.

Sterling recovers strong today after Q2 GDP came in as expected by 0.2% qoq, 1.6% yoy. Germany import price climbed 1.5% mom, 8.9% yoy in Jun. Eurozone M3 monthly supply growth slowed sharply to 9.5% yoy, below expectation of 10.3%. Japan national CPI beat expectation and climbed 2.0% yoy in Jun. Corporate Service Price Index rose 1.2%, much stronger than expectation of 0.6%.

More Technical Analysis Reports Here

GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 212.05; (P) 213.93; (R1) 215.10; More

GBP/JPY's retreat from 215.87, though steep, was contained by mentioned 211.53 support as expected and rebounds strongly in early US session. Break of 213.46 minor support indicates that fall from 215.87 has completed and flip intraday back to the upside. Further rise is now expected to be seen to 100% projection of 192.60 to 208.99 from 199.78 at 216.17 first. On the downside, while the consolidation from 215.87 might extend further, downside is still expected to be contained by 211.53 support and bring rally resumption.

In the bigger picture, a medium term bottom is in place at 192.60. Rebound from there is confirmed to have resumed after GBP/JPY takes out 213.91 resistance. Further rally should now be seen to 61.8% retracement of 241.35 to 192.60 at 222.75. On the downside, though, break of 207.98 will now be an important alert that rebound from 192.60 has completed and put focus back to 199.78 support in such case.

Stay tuned with our Forex Newsletters

ActionForex is set up with the aim to empower individual forex traders by providing insightful contents. Analysis reports, live pivot points on majors and crosses, etc are provided with collection of carefully selected educational articles and free trading ebook downloads.

Published on  Fri, Jul 25 2008, 13:24 GMT

Archive

• Weekly Review and Outlook - Intermarket Relationships Dominate And Will Continue So
  Published On Sun, Sep 7 2008, 11:51 GMT
• Mid-Day Forex Technical Report - US Unemployment Rate Surged to 5 Year High, Markets Volatile
  Published On Fri, Sep 5 2008, 13:16 GMT
• Daily Forex Technical Report - Massive Carry Trade Unwinding ahead of Non-Farm Payroll
  Published On Fri, Sep 5 2008, 07:44 GMT
• Mid-Day Forex Technical Report - EUR/USD Steady after ECB
  Published On Thu, Sep 4 2008, 13:24 GMT
• Daily Forex Technical Report - EUR/USD at Key Trend Line Support ahead of ECB Meeting
  Published On Thu, Sep 4 2008, 07:39 GMT

[ View All ]

• More Reports from this Author
• More Reports from this Contributor

Action Forex Company Limited  | Room 1707, 17/F Treasure Centre 42 Hung To Road Kwun Tong, Kowloon
http://www.actionforex.com | contact@actionforex.com