Daily maximum: 81.48Daily minimum: 80.13USD/JPY advanced today on an increase in US monthly pending home sales, hitting the daily forecast mean at 80.89. Daily Resistance: 79.77; 81.62; 82.42. Daily Support: 80.34; 79.97; 75.51. Daily Bias: Strongly bullish.
The British pound inched lower today, breaching the 1.5843 mark today, as the US monthly pending home sales improved more than expected (2.0% act./1.1% est.).
The common European currency started the second week in a row with a rally, breaching the market participants' mean (108.65), as investors await successful vote in Germany on the second Greek package approval.
The pair touched the daily forecast mean (1.3436) today as annual change in M3 money supply has beaten analysts' estimate (2.5% act./1.8% est.).
USD/CHF has already slid to 0.8960 and is likely to maintain its southward direction. Initially it is expected to tumble down to 0.8788/71 (200 day ma) and eventually down to 0.8568. Rallies are capped by a resistance line at 0.9066/88.
In the nearest future USD/JPY may struggle at 81.49/63, however, in the long-term the pair is anticipated to continue advancing towards 83.80. Dips in the meantime should be limited by supports located at 80.00 and 79.57/55.
The Cable is now facing a strong resistance area 1.5879/1.5927. It is formed by a number of February highs and 200 day ma. Above it the pair may encounter 1.6000 and 1.6092/1.6129. Supports are located at 1.5842 and 1.5650.
Beyond 109.53 (55 week ma) lie resistances 110.18 and 111.57, which should cap the currency couple and halt bullish momentum. From below EUR/JPY is underpinned by 107.09, 106.78 and by 106.02.
Even though at present EUR/USD is aiming for 1.3550, the pair is expected to lose its bullishness along the way to 1.3628, as the long-term outlook remains bearish. Supports are situated at 1.3436, 1.3322 and at 1.3199.
USD/CHF added to losses today as investors acquired Swiss Francs on improving macroeconomic conditions in the USA.
The American dollar edged higher today against the Japanese yen as US new home sales exceeded analysts' estimates (321K act./316K est.).
The British pound continued its rally today as investors perceived Europe's 3-loan program seems to be reviving the EU economy.
The single European currency advanced today versus the Japanese yen on weak annual change of Japan's CSPI (-0.2% act./0.1% est.).
EUR/USD advanced today as the EU banks may tap ECB for $629B cash next week, stimulating Europe's bond market.
USD/CHF has closed below 0.9080/66 and may decline further, down to 0.8960 or even 0.8788/69 (200 day ma), as the bearish momentum seems rather strong. Resistances are now placed at 0.9220, 0.9300/07 and 0.9317/31.
Both near-term and long-term outlooks are bullish for USD/JPY. Levels at 80.17/79.97 and 79.85 provide sufficient support for the pair to challenge 80.41. After overcoming the latter level, the pair should target 82.80 next.
Presently rally of the Cable, which commenced at 1.5645, is expected to prove to be short-lived. It is unlikely to extend above a formidable resistance area situated at 1.5765/1.5815. Additional supports are at 1.5617 and at 1.5580.
EUR/USD currency pair is bullish. The initial target for the price lies at 108.46, while a subsequent goal is located at 109.64 (55 week ma). From below the currency couple is supported by 106.17/105.85 and 105.72.
At the moment EUR/USD is headed toward a downtrend at 1.3520, after it has penetrated resistance at 1.3322. In case of dips, supports at 1.3190, 1.3133 and 1.3096 should halt bearish movement.
The American dollar weakened today against the Swiss Franc today as the business climate in Germany improved.
USD/JPY continued trading above the 80 mark today as the US unemployment claims remained at the 4-year low (352K act./351K est.).
The British pound attempted to rebound today as the BBA mortgage approvals (38.1K act./37.3K est.) and CBI industrial order expectations (-3K act./-14 est.) rose today.
Right after EUR/JPY touched the daily forecast mean at 106.02, the pair rebounded, continuing weekly rally as the German business sentiment improved.
The pair broke through the 1.33 level today as the German Ifo Business Climate index rose to the seven month high - 109.6 versus analysts estimate at 108.7.