US Dollar Open stable, Japanese Yen climbing

Daily Analysis

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	EUR/USD	USD/JPY	GBP/USD	USD/CHF
	1.4755	112.9	2.072	1.13
Resistance	1.4725	111.75	2.069	1.1265
	1.4705	111.45	2.062	1.1245
	1.4585	109.8	2.0425	1.113
Support	1.452	109.25	2.0355	1.106
	1.4465	109	2.0305	1.104

On the opening of the week the US Dollar shows stability against majors currencies. Although in the short term the dollar is back on track we shouldn’t forget that the primary trend is to continue on the downtrend. At the moment the Dollar is trading around the levels of 1.4645 against the Euro, around the levels of 110.55 against the Yen and around the levels of 2.0480 against the sterling.

In Japan, a growing number of market participants do not expect the Bank of Japan to raise interest rates until next April at the earliest. The survey found that half the respondents saw no rate hike before the current fiscal year ends (ending) in March. "A rate hike will likely come in February after confirming with the October-December gross domestic product data that the economy is regaining momentum," said Kyohei Morita, senior economist at Nomura Securities. "But if the BOJ cannot raise rates in February, it will be postponed until June," he said.

Just hours after the GDP data's release, the central bank ended a policy-board meeting with a decision to keep its key policy rate target unchanged at 0.5 percent amid market turmoil that has sent both stocks and the dollar sliding. Some economists in the survey said a global trend of monetary tightening has ended and a rate hike in Japan would be going against the headwind. It is difficult for the BOJ to raise rates when the U.S. Federal Reserve and the BOE are expected to cut rates.

The daily calendar looks thin; most of the daily trade is expect to be characterized with technical levels, In this case its very important to pay attention to the resistance and supports levels.

Pie chart