Forex: USD/JPY eases back to lows

A "risk off" sentiment is strengthening the Yen today, as it corrects from its extended rally that allowed a move to as high as 93.18 yesterday. Commerzbank analysts look at 93.32 as strong resistance, coupled with 93.96.

The USD/JPY quotes at 92.17 (-0.22%) after being denied a return to 92.50 in early Asian trading. The pair had started off with a spike low at 91.98.

"It continues to hold over the 240 minute cloud (90.28/89.66) and the Elliot wave count on the intraday chart is implying we have one more leg to 93.70 prior to failure", wrote Commerzbank analyst Karen Jones.

Feb 5, 2013

Forex Flash: USD/JPY close to 93.32 resistance - Commerzbank

Given that the USD/JPY is now extremely close to target 93.32 (measurement higher from its triangle), this together with 93.96 (38.2% retracement of the move down from 2007) is expected to act as a major resistance/target zone for this move, according to Commerzbank analysts.

Forex Flash: AUD/USD wanes in aftermath of steady RBA – UBS

The RBA left the policy rate on hold at a record low of 3.0%, very much in line with consensus opinion. However, the explicit easing bias was kept in place, triggered a 40-pip selloff in the AUD/USD. According to Research Analyst Gareth Berry at UBS, “Although the current policy settings were deemed to be appropriate today, the inflation outlook would afford scope to ease policy further, should that be necessary to support demand.”