USD/JPY finds a bid ahead of G20

<p>JPY continued to weaken after the rally earlier this week against the US dollar. USD/JPY found support and buying interest around 97.45 but caught a […]</p>

JPY continued to weaken after the rally earlier this week against the US dollar. USD/JPY found support and buying interest around 97.45 but caught a bid after breaching 97.80.

The G20 meetings start on Thursday in Washington. Banking leaders will likely remind Japanese officials about the pledge to not intervene in the yen. US and EU leaders are stressing to not rely solely on monetary and fiscal stimulus. BoJ Governor Kuroda’s insistence that easing is appropriate and not aimed at exchange rates, however, tends to weaken the yen.

Gold has finally stabilised after the historic moves around $1,380. Trading early in the European session has pushed gold slightly higher.

The euro has been stuck in a narrow range against USD for most of the Asian and early European session. The euro tested but failed to break above 1.3200. The currency has remained strong against GBP, leading into the minutes from the BoE meeting. The minutes today will illustrate if Governor Mervyn King was beaten again in a push to expand QE purchases. GBP should make a clear break following the minutes.

 


EUR/USD

Supports 1.3030-1.3070 | Resistance 1.3190-1.3265


USD/JPY

Supports 96.75-94.50 | Resistance 100.00-98.70


GBP/USD

Supports 1.5225 | Resistance 1.5430

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