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Forex Technical & Market Analysis FXCC Mar 04 2013

Discussion in 'Major Currency Crosses' started by alayoua, Mar 4, 2013.

  1. alayoua

    alayoua New Member

    Jul 19, 2011
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    Forex Technical & Market Analysis FXCC Mar 04 2013

    BoJ Kuroda will do whatever it takes to end deflation

    The confirmation hearing for Mr. Kuroda as the new chief of the BOJ is taking place in the parliament, and the first comments are crossing the wires. Among the standout headlines, he said that monetary policy will be deployed to conquer deflation, adding that BOJ has not bought enough assets to end deflation, also saying that the BOJ independence is secured by law. Lastly, there was some notorious comments on his assertiveness to implement policies, although with little effects to the Yen so far, as he also said - 'a la Draghi Japanese version' - that he will do whatever it takes to end deflation.

    He also noted: "The BOJ must clearly send out the message, through communication with markets, that it will do whatever it can to beat deflation." On the different options to ease policy further, BoJ Kuroda said the most natural way is to increase JBG purchases, buying longer-dated JGBs, although additional market behaviour inspection on potential repercussions should first be examined. He continued saying that the BOJ must expand economic stimulus both through assets volume increases and the type of assets it buys. Also that he might consider a new era of open-ended asset buying soon. To sum up, his comments sound very much as a recipe for disappointment - expectations being set very high - unless the bank starts executing an aggressive balance sheet expansion through domestic long term bond purchases and other risky assets in the coming months. If next April 4 BoJ meeting sees no much changes in policies, there might be more risk of Yen appreciation.

    Forex Economic Calendar :
    N/A E.M.U. Eurogroup meeting
    2013-03-04 09:30 GMT United Kingdom. PMI Construction (Feb)
    2013-03-04 10:00 GMT E.M.U. Producer Price Index (YoY) (Jan)
    2013-03-04 13:00 GMT United States. FOMC Member Yellen Speech

    Forex News :
    2013-03-04 05:31 GMT GBP/USD below 1.5050 ahead of UK Construction PMI
    2013-03-04 05:20 GMT EUR/USD wrestling around 1.30
    2013-03-04 04:54 GMT AUD/USD breaks down to 8-month lows
    2013-03-04 04:22 GMT Kiwi prints fresh 2013 lows

    EURUSD :
    HIGH 1.30309 LOW 1.30017 BID 1.30109 ASK 1.30117 CHANGE -0.04% TIME 08 : 18:34


    TREND CONDITION : Upward penetration

    MARKET ANALYSIS - Intraday Analysis

    Upwards scenario: We expect next barrier on the upside at 1.3046 (R1). Surpassing of this level might enable our initial target at 1.3080 (R2) and any further gains would then be limited to last resistive structure at 1.3114 (R3). Downwards scenario: Next support level locates at 1.2965 (S1), breaching of this level would provide a signal of possible price regress towards to next target at 1.2933 (S2). If the price manages to overcome it, our final support for today could be found at 1.2900 (S3).

    Resistance Levels: 1.3046, 1.3080, 1.3114
    Support Levels: 1.2965, 1.2933, 1.2900

    GBPUSD :

    HIGH 1.50437 LOW 1.50222 BID 1.50325 ASK 1.50338 CHANGE -0.01% TIME 08 : 18:35


    TREND CONDITION : Upward penetration

    Upwards scenario: Our technical outlook for the medium-term perspective remains bearish oriented however a break through next resistance level at 1.5049 (R1) would enable corrective action and might expose our next targets at 1.5087 (R2) and 1.5125 (R3) in potential. Downwards scenario: While instrument trades below the next resistance level, our medium-term bias forecast would be negative. Penetration below the support level at 1.4984 (S1) might open the way towards to lower targets at 1.4946 (S2) and 1.4909 (S3).

    Resistance Levels: 1.5049, 1.5087, 1.5125
    Support Levels: 1.4984, 1.4946, 1.4909

    USDJPY :

    HIGH 93.723 LOW 93.284 BID 93.416 ASK 93.421 CHANGE -0.13% TIME 08 : 18:36


    TREND CONDITION : Up trend

    Upwards scenario: Hourly chart consensus remains in play. Buyers might face next challenge at 93.72 (R1). Break here is required to establish bullish pressure, targeting 93.92 (R2) en route towards to last resistance for today at 94.12 (R3). Downwards scenario: The downside trend evolvement is limited now to the next support level at 93.27 (S1), break here would put near-term bulls on hold. Marks at 93.07 (S2) and 92.86 (S3) is the next supportive bastion on the way.

    Resistance Levels: 93.72, 93.92, 94.12
    Support Levels: 93.27, 93.07, 92.86

    Source: FX Central Clearing Ltd,( Forex Blog | Best ECN Forex Brokers | Currency Converter | FXCC )

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