The yen has fallen amid the BoE comments | 16 Febrero 2015

Euro

The euro has grown against the dollar. We received the 4th quarter Eurozone GDP preliminary assessment. In general it was + 0.3% q/q, + 0.9% y/y vs. 0.2% and 0.8% respectively in the third quarter. There was a stronger quarter growth by 0.7% q/q in Germany vs. 0.3% q/q while it was + 0.1% q/q in France in line with expectations after + 0.3% q/q.

It seems that the bears’ grip has weakened and they are not able to break through below the support at the level of 1.1320-1.1340. But the bulls did not miss the chance and tried to resume a correction, raising the pair to the resistance near 1.1440-1.1460.

The support levels are 1.1320-1.1340, and the resistance levels are 1.1440-1.1460.

MACD is in a positive territory.

Trading recommendations

In general, the pair remains very cautious and while it is trading below 1.1520-1.1540, the risks of a renewed fall will be preserved. The pair growth above the last level will weaken the downward pressure.

Pound

The Bank of England signaled that the key interest rates increase in 2016 may cause the pound growth against the dollar. The pound received some support from M. Carney comments who said that there would not be deflation in the UK and it can be required a more rapid key interest rate increase.

The pair GBP/USD was bought out from the support near the 52nd figure which led to the pair growth to the resistance around 1.5350-1.5370. At this time, bulls managed to break through this level and test the mark of 1.5415-1.5435. Now the pound is trying to consolidate above the broken through level, and if successful, it will continue to grow towards the 55th figure.

The support levels: 1.5330-1.5350 and the resistance levels: 1.5415-1.5435.

The MACD indicator is in a positive territory.

Trading recommendations

The pair decrease below 1.5330-1.5350 will lead to a return to the support near 1.5260-1.5280. Despite the levels breakthrough, we should not still talk about the downward trend completion.

Yen

The dollar/yen fell sharply last week. The reason for the yen growth was the Bank of Japan reports about the additional monetary policy easing measures to support the inflation. The reports were unproductive and even able to harm the economy. They weakened expectations, concerning the incentive programs increase and caused the large-scale yen purchases. Having broken through the psychological level of 120.00-120.20, the pair dollar/yen failed to consolidate above it. Once being under pressure from the sellers’ part, it returned below this level, falling under the level of 119.05-119.25.

The support levels: 117.95-118.15, and the resistance levels: 119.25-119.45.

The MACD indicator is in a positive territory.

Trading recommendations

The pair inability to consolidate above 120.00-120.20 is a negative factor, but bears need to overcome the support near 117.95-118.15 to continue the downward correction. Its growth above 120.00-120.20 will mean the uptrend resumption.