USDJPY finds sellers against retracement level
The USDJPY tested the 38.2% of the move down from the January 24th high to the low reached on February 1st. That level comes in at the 76.879 level. The high today reached 76.85 and has backed off. The next support level comes in at the trendline at the 76.65 level. Below that the 200 hour MA at the 76.55 level is the next target. The pair was supported today on the official word that the BOJ did in fact intervene in the market (13.2 billion). The intervention occurred on October 31st. On that day the low for the USDJPY was 75.56 and the high reached 79.52. The price has since moved down to the lowest level since that intervention at the 76.017 level. BOJ Shirakawa amd Finance Minister Azumi has each stated recently that they won’t rule out any action to curb the rise including intervention.
EURUSD moves higher on Greek statement (Again)
The market is clearly trading with short term intentions in place. Markets are sloppy. The market moved quickly to the upside on yet another comment about a Greek bailout. Because of the headline effect it seems that the real movers in the EURUSD market are simply waiting for the dust to all settle. This helps contribute to the up and down action.
Nevertheless the EURUSD has moved above the previous high for the day above 1.3167 and looks toward the next target at the 1.3184 area. The high from last week came in at the 1.3226 level. Other highs during the week were at 1.3217, 1.3211 and 1.3204. These will also be targets above.
On the downside the 100 and 200 hour MA have converged at the 1.3130 level and this will now be support for intraday traders.
Recognize the markets are sloppy and therefore deserve being patient for risk defined entries. At those points, the market will work for you or you get out. The best way to define risk is still technical levels. Keep stops in place and be prepared for a bumpy ride.
Canada permits send the USDCAD lower
The Building Permits is at the highest level in 4 1/2 years after a surprising 11.1% gain (expected 1%). The USDCAD has moved lower on the news and pushed back below the 100 hour MA at the 0.9973 level. Traders should use this level to sell against. The close from yesterday came in at the 0.9957. This is the next level to get through on the downside.
Canada Building Permits Surge
Canada Building Permits: Survey: 1.0% Actual: 11.1% Prior: -3.6% Revised: -2.6%
Canada Building Permits Due at 8:30AM
SNB’s Jordan says “won’t tolerate” CHF breaching 1.20 against the Euro.
- SNB ready to take further measures if needed.
- Further escalation of Euro crisis is “main risk”.
- Swiss economy to cool “considerably” in 2012.
- SNB “more than ever” committed to defending cap.
- Policy has been absolutely credible to markets.
- Franc remains “very strong”.
- CHF should weaken “over time”.
- “Downside risks” prevail.
- Can’t allow Franc to appreciate further.
EUR/CHF was relatively unaffected by the release.
German Industrial Production (Dec) -2.9% vs. 0.0% expected.
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