Dealer's comment USD/JPY soon under pressure again?
Better-than-expected US labour market data led to US dollar renaissance. The greenback sharply gained against the major currency and the Japanese currency, too. Decline of the Japanese yen was favoured due to the Bank of Japan's decision in an extraordinary meeting to supply more liquidity to the bank sector. It was considered as a reaction to Japanese yen till then strong gains and to increasing deflation tendency.
Although in a chart technical view USD/JPY keeps its downward trend, the measure itself has no sense, so with its help neither market situation would revive, nor the deflation could struggled. The liquidation goes to bank accounts and for the lack of credit demand from companies finally to the capital market and, for example, bring up the course in the stock market. In spite of dollar gains by 5 yens in a few days the chart-technical downward trend in the currency market was not broken.
Citigroup recomends to sell euro on its growing
The single European currency is trading with bearish sentiment and at present approaching to the key support level at $1.4750, which breakdown would be expected as a signal for more strong euro declines. Currency strategists at Citigroup noted that an unfacourable change of chart technical view for this currency pair which would be a reason to expect a serious rally against the dollar in the next few weeks. Citigroup recomends to use euro's growing attepmt to $1.4829 on expectations for extending declines towards the 200-day moving average at $1.41 and with loss cut at $1.5070.
Better-than-expected US labour market data led to US dollar renaissance. The greenback sharply gained against the major currency and the Japanese currency, too. Decline of the Japanese yen was favoured due to the Bank of Japan's decision in an extraordinary meeting to supply more liquidity to the bank sector. It was considered as a reaction to Japanese yen till then strong gains and to increasing deflation tendency.
Although in a chart technical view USD/JPY keeps its downward trend, the measure itself has no sense, so with its help neither market situation would revive, nor the deflation could struggled. The liquidation goes to bank accounts and for the lack of credit demand from companies finally to the capital market and, for example, bring up the course in the stock market. In spite of dollar gains by 5 yens in a few days the chart-technical downward trend in the currency market was not broken.
Citigroup recomends to sell euro on its growing
The single European currency is trading with bearish sentiment and at present approaching to the key support level at $1.4750, which breakdown would be expected as a signal for more strong euro declines. Currency strategists at Citigroup noted that an unfacourable change of chart technical view for this currency pair which would be a reason to expect a serious rally against the dollar in the next few weeks. Citigroup recomends to use euro's growing attepmt to $1.4829 on expectations for extending declines towards the 200-day moving average at $1.41 and with loss cut at $1.5070.
