USD/JPY
Range: 81.50- 81.78
Support: 81.20
Resistance: 82.00
USDJPY has retreated from its 10-day high of 82.00, currently trading around the 81.60 mark. Last night the BoJ voted unanimously to keep benchmark borrowing costs unchanged, targeting the 0.0-0.1% range set at the last policy meeting. It also maintained its credit loan program static at 30bn Yen. However the bank did offer more details on the 5 trillion yen asset purchase program unveiled earlier this month. The muted response seems fair, considering policymakers did not offer any changes to the existing monetary policy mix; merely providing some information on the latest stimulus to be undertaken.
GBP/USD
Range: 0.7470 – 0.7488
Support: 0.7445
Resistance: 0.7500
The New Zealand Dollar rallied very modestly after RBNZ kept the benchmark overnight cash rate unchanged at 3%. This has been the second meeting in a row which the central bank has kept rates steady after stating its rate hike campaign in June. The outcome was widely expected by markets, but whilst unchanged, it has been the accompanying statements that have been of more interest. However Alan Bollard Governor of the RBNZ was very mixed in his opinions, and as such the Kiwi failed to pick up any noticeable gains against its counterparts.
EUR/USD
Range: 1.3764 – 1.3829
Support: 1.3760
Resistance: 1.3850
EURUSD did react quite well yesterday holding the 1.3885 resistance at 1.3880 and dropping through 1.3793 which provoked sellers to come back into the market and drive us to 1.3730. Currently we are back above 1.3800, which may give us the chance to test the 1.3880 level. However a failure at the 1.3840 mark may be another sign that the reversal is well and truly here.
