Tag: Japanese yen

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Forex: Euro and Yen weaken while Rand recovers

The Euro is retreating to test medium-term support at $1.30 on the weekly chart. Failure would mean a fall to primary support at $1.25/$1.26. 63-Day Twiggs Momentum holding below zero reinforces the primary down-trend.

EURUSD

* Target calculation: 1.25 – ( 1.35 – 1.25 ) = 1.15

Pound Sterling is ranging between $1.5650 and $1.6000 against the greenback. Upward breakout would signal a primary up-trend but 63-Day Twiggs Momentum below zero continues to warn of the opposite.

GBPUSD

The dollar respected the new support level at 80 Japanese Yen. Breakout above ¥82 would confirm the primary up-trend, with an initial target of ¥85.

USDJPY

* Target calculation: 80 + ( 80 – 75 ) = 85

The Aussie Dollar continues to test support at R8.00 South African Rand. Failure would offer an initial target of R7.50, at the rising trendline. Momentum is falling sharply and reversal of 63-day Twiggs Momentum below zero would warn of a primary down-trend.

AUDZAR

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Forex: Europe and Japan

The Euro is in a primary down-trend despite the latest rally, headed for a test of the descending trendline. Expect retracement to test support at $1.32; breach of $1.30 would warn of another test of primary support (at $1.26).

Euro/US Dollar

* Target calculation: 1.32 – ( 1.42 – 1.32 ) = 1.22

Pound Sterling broke its descending trendline several weeks ago and is headed for a test of resistance at $1.62. Upward breakout is unlikely at present, but recovery of 63-day Twiggs Momentum above zero would be a bullish sign.

Pound Sterling/USD

The US Dollar is retracing to test the new support level after breaking long-term resistance at 80 Japanese Yen. Recovery of 63-day Twiggs Momentum above zero, after a long-term bullish divergence, indicates a primary up-trend. Expect a test of the 2011 high at ¥85.

US Dollar/Japanese Yen

* Target calculation: 80 + ( 80 – 75 ) = 85

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Forex: Euro slides on Greek turmoil

The euro retreated below $1.32 USD; failure of support at $1.30 would indicate another test of primary support at $1.26. And breakout below primary support would signal a decline to $1.20*.

Euro

* Target calculation: 1.26 – ( 1.32 – 1.26 ) = 1.20

Pound Sterling is retreating on the weekly chart. Respect of the zero line by 63-day Twiggs Momentum warns of another test of primary support at $1.53.

Pound Sterling

Canada’s Loonie respected resistance at $1.01 and is likely to re-test its rising trendline. Recovery above $1.01 is uncertain but would signal a primary up-trend.

Loonie

* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06

The Aussie Dollar similarly respected resistance at $1.08 and is likely to test medium-term support and the rising trendline at $1.04. Breakout above $1.08 would indicate a primary up-trend; confirmed if 63-day Momentum respects the zero line (from above).

Aussie Dollar

* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20

The US Dollar found support at R7.50 South African Rand. A rally that respects the descending trendline, however, would warn of continuation of the primary down-trend. Fall of 63-day Twiggs Momentum below zero would strengthen the bear signal.

US Dollar/South African Rand

The greenback is strengthening against the Japanese Yen. Breach of the descending trendline indicates that a bottom is forming. And breakout above ¥80 would signal the start of a primary up-trend — confirming the long-term bullish divergence on 63-day Twiggs Momentum.

Japanese Yen

* Target calculation: 80 + ( 80 – 76 ) = 84

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Forex update: Euro breaks support

The euro broke through primary support at $1.32, warning of another primary decline with a target of $1.22*. Declining 63-day Twiggs Momentum indicates a strong primary down-trend.
Euro

* Target calculation: 1.32 – ( 1.42 – 1.32 ) = 1.22

Pound Sterling is testing primary support at $1.54, while 63-day Twiggs Momentum is below zero. Failure of support would signal a primary decline to $1.46.

Pound Sterling

* Target calculation: 1.54 – ( 1.62 – 1.54 ) = 1.46

The Aussie Dollar retreated below parity, indicating another test of medium term support at $0.97. Failure would test primary support at $0.94/$0.95. Respect of the zero line by 63-day Twiggs Momentum indicates a continuing primary down-trend. Weakening commodity prices, especially coal and iron ore, should strengthen the down-trend.

Australian Dollar

* Target calculation: 0.97 – ( 1.03 – 0.97 ) = 0.91

The Canadian Loonie is headed for a test of primary support at $0.94/$0.95. 63-Day Twiggs Momentum holding below zero suggests a continuing primary down-trend.

Canadian Dollar

* Target calculation: 0.95 – ( 1.00 – 0.95 ) = 0.90

A monthly chart of the Greenback against the Yen shows strong bullish divergence on 63-day Twiggs Momentum, suggesting reversal of the primary down-trend. Breakout above ¥80 and the descending trendline would confirm the signal.

Japanese Yen

The US Dollar continues in a strong up-trend against both the South African Rand and Brazilian Real, helped by falling commodity prices. Breakout above R8.60 would signal a further advance to R9.20.

South African Rand and Brazilian Real

* Target calculation: 8.60 + ( 8.60 – 8.00 ) = 9.20

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Japanese yen

The Bank of Japan is taking measures to suppress the yen against the greenback. The long-term chart shows why their efforts are destined to fail: the dollar has maintained a strong down-trend against the yen for a number of years. Failure of support at ¥76 would indicate that the BOJ’s latest efforts have failed and will offer a target of 72*.

USDJPY

* Target calculation: 76 – ( 80 – 76 ) = 72

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Japan Unveils Measures on Yen Strength – WSJ.com

The government aims to “soften the pain” from the strong yen and keep it from leading to more “hollowing out” of Japanese industry, the plan says. It calls for expanding and extending funds for key industries that create jobs, as well as expanding training for workers and the unemployed.

It also urges expansion of financial support for small- and medium-sized businesses, many of which have been hit hard by the currency’s surge.

The government also revealed measures intended to exploit the strong yen’s merits, implicitly acknowledging the limits on Tokyo’s ability to weaken the currency.

The plan proposes support for Japanese companies conducting mergers and acquisitions overseas, as well as for development of overseas natural resources and energy supplies, which the strong yen could help make cheaper.

Tokyo also wants to make the benefits of the strong yen apparent to consumers in areas such as electricity and gas utility prices, and calls for the implementation of a survey of consumers on the merits of the currency’s rise.

via Japan Unveils Measures on Yen Strength – WSJ.com.

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