Japanese Yen gets pushed down again

By Grace Cheng on April 3, 2007 | More Posts By Grace Cheng | Author's Website

Seems like the yen carry trade is establishing some serious interest again after the recent liquidation debacle. High-yielding currencies such as the Kiwi, British Pound, the Loonie have been climbing up in quite a steady manner against the Japanese Yen. In fact, the Yen has been pushed down to a one-month low against the USD today as it breaks above the stubborn resistance of 118.50. If it can close..

above this level, that will be another sign for other USD/JPY bulls to join in. Nearest resistance zone is around 118.90-119.20, then 119.70-120.00. Nearest support is around 118.40-50, then 118.00-10.

USD/CHF hesitated breaking past expected resistance level around 1.2190 ("1.2190-2200"). Nearest resistance zone is around 1.2190-1.2220. Other possible topside barriers are around 1.2240, then 1.2260-80, then 1.2300. Possible support areas are around 1.2145, 1.2100-20, 1.2070-80, 1.2030-50.

5-min chart of Swissy:

 

My opinion is that any rally of the US dollar in the meantime will be quite restrained as this Friday’s payrolls data may prove a disappointment, which is a possibility considering the poor employment component in Monday’s ISM manufacturing survey.

 

Wednesday:

Eurozone purchasing managers index - Services 0800 GMT

Eurozone retail sales 0900 GMT

UK BRC shop price index 0930 GMT

US MBA mortgage applications 1100 GMT

US ADP employment change 1215 GMT

US factory orders, ISM non-manufacturing 1400 GMT

Fed’s Fisher speaks on US economy 1715 GMT

Click here to view Forex Economic Calendar

Click here to use Free Forex Charts

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Posted in Categories: Forex.

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