Today, the USD/JPY pair skyrocketed breaking all the in-between resistance levels. After the heavy plunge of Friday, the pair had tried to rally upwards on Monday but failed to break the major resistance levels. The pair sustained range bound movement between 109.73 and 110.23 levels.
The USD/JPY pair began the day at 110.09 level. After that, it made a slight upward drift following the rebound of 10-year US T-bond yield. The pair again slipped lower to a new support level of 110.01. From that reversal point, the pair soared continuously moving up more than 0.58 percent.
During the morning session, the Bank of Japan (BoJ) reported its Summary of Opinions which mentioned that the bank would stay flexible on varying economic changes.
The USD Index that computes the greenback against the six major currencies weighed more against its peers today. After consolidating in the early hours, the index changed gears at 04:00 GMT and took a steep upward jump reaching 96.092 level. After a small correction, the index uplifted further on lower 10-year Treasury Bond Yields. The escalation continued despite poor February Housing Starts and Building Permits reports released today. Both numbers were below the consensus estimate.
“There is a reluctance to buy dollars, while the bar for selling dollars has been relatively high because people have been burned before,” said Steven Englander, global head of G10 FX research at Standard Chartered Bank in New York.
The EUR/USD tumbled reaching far below 1.1300 level. The greenback climbed new highs recovering previous losses. The USD Index had touched 96.7500 level during the day. The pair was unsuccessful in breaking the 200-week Simple Moving Average (SMA). The fall worsened later the day reaching weekly low under the vicinity of 1.1280.
The Brexit changed controls over to the Parliamentarians. Euro Investors are highly worried over concerns on a deal Brexit as Eurozone Elections are nearing.
The Loonie pair seems to end the day at low levels. The pair had risen in the mid-day session after the rebounding of the US 10-year treasury bonds yields. Poor US housing data and other indexes released today, pushed the loonie pair down later the day.
With the OPEC cut in production and rising oil demands, the price of crude oil reached new highs. This elevation in the crude price helped the Canadian Dollar to uplift which lowered the pair further. The USD/CAD pair touched the day’s low of 1.3371 twice during the day.
The pair remained under consolidation mode for quite some time before beginning with the downtrend. The USD/TRY pair showed violent movements ranging between 5.50/5.60 levels during the day. At 14:20 GMT, the pair started slumping heavily from 5.5616 level reaching 5.3829 level. Investors look for the Sunday Municipal elections.
The Simple Moving Average (SMA) for the major days lie above the last traded level of the pair. This symbolizes a bearish stance for the pair. The pair traded staying within the range of the Bollinger Band without breaking the boundaries. Mid-day contraction was followed by a later expansion. The bearish pressure increased multifold with the economic sluggishness amid US poor data revealing reports released during the day. A selling has taken place which brought the pair down to lower levels as the day approaches to end.