Japan hits shock recession

<p>The yen once again is the main mover as it falls sharply from its seven-year high after Japan shows that it’s entered an unexpected recession, […]</p>

The yen once again is the main mover as it falls sharply from its seven-year high after Japan shows that it’s entered an unexpected recession, which puts PM Abe’s plans to hike the sales tax in jeopardy and the delay is now back on.

USD/JPY is currently trading below the 116.00 level after hitting highs overnight just above 117.00.  There’s more uncertainty around the yen and it’s still the most volatile.

EUR/USD is trading pretty flat for the start of the week after a late surge on Friday, taking out a few stops along the way we are now trading above 1.2500 level. With Draghi due to hit the wires later this afternoon, we’ll be listening to see if he can add to the gains of late.

Cable had a good start overnight but is slowly losing its gains as the UK session gets under way. With no data to be released today, we could see it range-bound until tomorrow when we get the CPI data.  Currently GBP/USD is trading just below the 1.5700 level.

 

 

EUR/USD

Supports  1.2520 1.2510 1.2500  | Resistance 1.2530 1.2540 1.2550

 

 

USD/JPY

Supports 115.75 115.40 114.90  Resistance 116.00 116.45 116.75

 

 



GBP/USD

Supports 1.5670 1.5655 1.5645  Resistance 1.5680 1.5690 1.5700

 

 

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