The yen keeps falling at all markets | 05 November 2014

Euro

The euro slightly increased. Earlier the single European currency with the US dollar was trading in the side consolidation. The euro area statistics will attract the traders’ attention as it will present the producer prices that point out to the inflation release. The September Producer Price Index (PPI) is expected to be unchanged and the year-on-year fall continuation, 0.0% m/m, -1.5% y/y vs. -0.1% m/m, -1.4% y/y in August. Technically, after falling to 1.2435, the pair consolidated in a narrow range, and then it grew and tested the level of 1.2580, which does not change the negative forecast on it, and the pressure is preserved.

The support levels are 1.2480-1.2500, and the resistance levels are 1.2580-1.2600.

MACD is in a negative territory.

Trading recommendations

The bearish views are still popular. The bears may test the level of 1.2405-1.2425 in the short term. However, if bulls manage to consolidate above 1.2480-1.2500, the euro will be corrected towards 1.2660-1.2680.

Pound

The US dollar trades against the pound came down to the consolidation range and ended on the opening prices. The statistics package will be presented by the PMI index that reflects the activity dynamics in the UK construction sector. The political component will draw a special attention- the BoE leaders - Kanlifa D. and E. Bailey and others speeches. The GBP/USD continues to consolidate above the support level of 1.5940-1.5960. Its recovery attempts are limited by the resistance level of 1.6040-1.6060. Thus, there was formed a range from which there will identified the further movement direction.

The support levels are 1.5940 - 1.5960, and the resistance levels are 1.6040 - 1.6060.

MACD is in a negative territory.

Trading recommendations

The pair is now decisively trading below 1.5900 mark. The support breakthrough w should send this market looking for the support level of 1.5850-1.5870. The growth above 1.6040-1.6060 and the ability to consolidate above will lead to the pound growth above 1.6130-1.6150. This level breakthrough will weaken the downward pressure.

Yen

The yen sales have continued. The contrast between the Japan monetary policy and the US regulators strengthened and supported the dollar growth impulse against the Japanese yen. The Japanese economic statistics is quite discouraging- the manufacturing PMI index pointed to the slower growth in October and fixed the indicator decline to 52.4 from 52.8, the message about the vehicle sales the last month announced the continued fall, -9.1% y/y vs. - 2.8% y/y.

The US dollar rose against the Japanese yen to resistance level of 114.20-114.40. Here the bulls took a break, in result the pair rebounded to the support level of 113.30-113.10.

The support levels: 113.10-113.30, and the resistance levels: 114.20-114.40.

The MACD indicator is in a positive territory.

Trading recommendations

We believe that this is essentially a “buy only” market at the moment. The consolidation is possible in the range between 113.10-113.30 and 114.20-114.40 at this stage. That being the case we feel that the resistance breakthrough will lead to the pair growth to 115.25-115.55. The fall below 112.40-112.60 will weaken the upward impulse.