MARKET OVERVIEW
2012-12-19 16:06 GMT
All Eyes On Bank of Japan Following Abe Win
Now that the Japanese lower house elections are over, trader focus is being placed on the Bank of Japan’s monetary policy decision – taking place over the next two days. This decision will be important one for the underlying currency, which continues to lose against the US dollar. Since the beginning of the election campaign, LDP leader Shinzo Abe has run on the platform for further monetary easing in boosting economic growth. As a result, central bank leaders have been under extreme pressure from Abe supporters in expanding monetary policy – currently totaling $1.1 trillion.
And, now that Abe has won, further accommodation is anticipated. Expectations are now for the Bank of Japan to leave interest rates near zero, while expanding monetary policy by another $1 billion. Such a move may ultimately jeopardize the independence of the Bank of Japan, as policymakers would be falling into line with the political agenda. Incidentally, traders will be looking for a change in the inflation target set by the central bank – potentially raising it to 2% from the current 1%. This is another Abe policy that was promised as the government attempts to alleviate the current deflationary environment. -FXstreet.com
Forex Economic Calendar
2012-12-20 09:30 GMT | United Kingdom. Core Consumer Price Index (YoY) (Nov)
2012-12-20 09:30 GMT | United Kingdom. Consumer Price Index (YoY) (Nov)
2012-12-20 11:00 GMT | United Kingdom. BoE Quarterly Bulletin (Q4)
2012-12-20 23:50 GMT | Japan. Merchandise Trade Balance Total (Nov)
Forex News
2012-12-20 06:07 GMT | Will EUR/USD buyers had enough at 1.33 highs?
2012-12-20 05:29 GMT | GBP/USD set for reversal after daily pin?
2012-12-20 04:23 GMT | USD/JPY shakes both sides post-BoJ; holds above 84.00
2012-12-20 03:30 GMT | EUR/GBP undecided below 0.8150
| AUDUSD | NZDUSD | USDCHF | USDCAD | GBPJPY | EURCHF | GOLD | SILVER |
|---|---|---|---|---|---|---|---|
| 1.04879 / 888 | 0.83594 / 609 | 0.91384 / 396 | 0.98850 / 858 | 136.538 / 555 | 1.20783 / 803 | 1668.34 / .62 |
TECHNICAL ANALYSIS
EURUSD
HIGH: 1.3229 | LOW: 1.31883 | BID: 1.32167 | ASK: 1.32172 | CHANGE : -0.07% | TIME: 08:12:57
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Medium
MARKET ANALYSIS – Intraday Analysis
Upwards scenario: The initial uptrend formation might be resumed later on today. Possible intraday targets locate at 1.3252 (R2) and 1.3274 (R3), in case of successful penetration above the next resistance level at 1.3231 (R1). Downwards scenario: Market still had the chance to retest the key support level at 1.3188 (S1). Any further easing below it would then face supportive measures at 1.3166 (S2) and 1.3144 (S3) in potential.
Resistance Levels: 1.3231, 1.3252, 1.3274
Support Levels: 1.3188, 1.3166, 1.3144
GBPUSD
HIGH: 1.62614 | LOW: 1.62382 | BID: 1.62509 | ASK: 1.62517 | CHANGE: 0.04% | TIME: 08:12:59
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Medium
Upwards scenario: The pair might keep general upside move intact after possible consolidation ahead. Appreciation above the next resistance at 1.6263 (R1) would enable next targets at 1.6276 (R2) and 1.6289 (R3) in potential. Downwards scenario: In regard to the descending movement, opportunities for bearish oriented traders are seen below the support level at 1.6238 (S1). Loss here would enable next targets at 1.6225 (S2) and 1.6211 (S3).
Resistance Levels: 1.6263, 1.6276, 1.6289
Support Levels: 1.6238, 1.6225, 1.6211
USDJPY
HIGH: 84.384 | LOW: 83.859 | BID: 83.983 | ASK: 83.986 | CHANGE: -0.49% | TIME: 08:13:00
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Medium
Upwards scenario: Our next resistance level is placed at 84.23 (R1), break above it might extend gains towards to next targets at 84.34 (R2) and 84.47 (R3) in potential. Downwards scenario: Instrument has settled negative bias on the hourly timeframe and we expect gradual decline towards to our support levels. Next attractive support level locates at 83.84 (S1). Break here is required to put in focus lower target at 83.72 (S2) and 83.59 (S3).
Resistance Levels: 84.23, 84.34, 84.47
Support Levels: 83.84, 83.72, 83.59
Prepared/Published By FXCC Forex Trading Blog.