The USD/JPY uptrend is still in force | 22 September 2014

Euro

The single European currency is trading in the same range in the absence of catalysts to move the pair further. The ECB published the results concerning the first program target credits that had shown a smaller volume-than-it was expected for planned funds allocation (82.6 billion. euro ($ 106.5 billion.) at a fixed rate of 0.15%. The forecasts ranged included from 100 billion euro to 300 billion euro with a median value of 150 billion euro.

The EUR/USD recovered after the fall to 1.2835 against this background the pair was able to get back above the resistance level of 1.2890. Now the level of 1.2800 is a support.

The support levels are 1.2780- 1.2800, and the resistance levels are 1.2890 - 1.2910.

MACD is in a negative territory.

Trading recommendations

If the euro manages to consolidate above the level of 1.2890, the chances for the recovery will significantly rise. In its turn, the inability to overcome the resistance of 1.2960 and loss of 1.2800 will jeopardize the breakdown current lows at the level of 1.2730. The next resistance is located in the area of 1.3030.

Pound

After the Scottish independence referendum is over the British pound rose sharply. The opponents against the separation won in a sufficient majority. Scotland will remain a part of the United Kingdom. The opponents’ victory against the separation from Great Britain returns the market economic fundamentals into our focus. After it became quite clear that the separation would not occur the pound jumped to 1.6525 and then fell back to 1.6280.

The support levels are 1.6180 - 1.6200, and the resistance levels are 1.6300 - 1.6320.

MACD is in a positive territory.

Trading recommendations

The British pound is still in demand and it may return to 1.6370. The break in this level will lead to the increase up to 1.6450. We should consider the long positions opening based on the reversal towards the support level of 1.6200. The last level loss will mean the downtrend resumption.

Yen

The Japanese currency continued to consolidate in a narrow price range before an updated multi-annual low against the dollar. The Bank of Japan deputy Yamaguchi said that there was a need to monitor the excessive yen depreciation, as the yen fall undermines the small and the medium-sized businesses position. It is necessary to take flexible economic measures to prevent serious impact on SME because of rising prices for fuel and raw material. The dollar/yen broke through the resistance level of 108.70 and the dollar rose to 109.45. Thus, the target the level of 110.00 is getting closer and soon can be tested.

The support levels: 108.50- 108.70, and the resistance levels: 109.20- 109.40.

The MACD indicator is in a positive territory.

Trading recommendations

The bears’ activation is possible as the dollar shows a fairly strong overbought, from the current levels, or after the level of 110.00 testing.