News analisis

USD/JPY returns to broader stimuli - Scotiabank

Eric Theoret, Currency Strategist at Scotiabank noted that JPY is soft, down 0.2% as a result of the moderation in risk aversion.

Eric Theoret, Currency Strategist at Scotiabank noted that JPY is soft, down 0.2% as a result of the moderation in risk aversion.

Key Quotes

"Broader market sentiment is likely to remain the key near term driver for JPY, given the passing of BoJ related risk events, as we await next week’s trade and CPI releases. Thursday’s multi-month closing low highlights the importance of broader themes in the current environment."

"USD/JPY short-term technicals: bearish—the MACD and RSI are only modestly bearish, providing for ample downside in the event of a decline. However, we note steady support in the 101.00 to 101.20 range. For resistance, we look to the 9 day MA (101.48) followed by the 21 day MA (101.67)."

EUR/USD rebounds and rises back above 1.3500

The EUR/USD moved off daily lows and rose back above 1.3500.

The EUR/USD moved off daily lows and rose back above 1.3500. During the last two hours moved in a range between 1.3520 and 1.3505. Earlier dropped to 1.3489, hitting the lowest price since February.

EUR/USD technical outlook 

According to Valeria Bednarik, Chief Analyst at FXStreet the daily chart shows price moving further below its 20 SMA, “as indicators gain bearish momentum getting into negative territory”.

“The same chart shows that around the 1.3476 area, this year low, there are also several daily highs and lows back from September 2013, reinforcing the strength of the support”, notes Bednarik.

NZD/USD consolidated and awaits RBNZ moves

NZD/USD is trading at 0.8679, up 0.13% on the day, having posted a daily high at 0.8697 and low at 0.8649.

NZD/USD is trading at 0.8679, up 0.13% on the day, having posted a daily high at 0.8697 and low at 0.8649.

NZD/USD has pulled back some gains at the end of the Asia week and looks set on a consolidation into the closing day in the US session. As per next week, Analysts at TD Securities explained that, the RBNZ is expected to add another +25bp to the Official Cash Rate to 3.5%, as did Elisabeth Andreae, analyst at Commerzbank who said that they expect the RBNZ to hike rates once more next week and then pause. “The RBNZ still clearly assesses the NZD as overvalued”.

NZD/USD Levels

Spot is presently trading at 0.8680, and next resistance can be seen at 0.8697 (Daily High), 0.8722 (Yesterday's High) and 0.8730 (Hourly 100 SMA). Support below can be found at 0.8678 (Hourly 20 EMA) and 0.8665 (Yesterday's Low).

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