Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Oct 29 08 08:42 GMT |

Good morning from cold and cloudy Hamburg. Most of FOREX market's speculators are concentrated on all the cross/JPY pairs, especially the USD/JPY after the Japanese currency gets more and more volatile. However we hope for a successful trading day. Markets review Most of cross/JPY pairs have shown an aggressive rise on Tuesday, because of news about a rate cut of the Bank of Japan this week that sparked a hefty stock rally and a rebound in investor appetite for risk. The USD/JPY edged up on Tuesday over 6 %, its biggest one-day rise since 1974 and the second biggest since being allowed to trade freely in 1973. The market moves about 600 pips from its opening at 92.61 to its close price at 98.51. These levels were both near the USD/JPY low and high price. Nevertheless, some traders told that the pair could stay between the level of 95 and 100 and an unchanged rate could hold the JPY strong. They added some Japanese exporters could stop to sell the USD if it touches the 100 JPY level. In some quarterly earning reports this week, exporters such as Canon Inc and Panasonic Corp said they were using the 100 USD/JPY level as a target price for their business planning. The G7 action was seen as giving Japan the scope to intervene in currency markets to attenuate the JPY, which has reached a 13-year high against the USD on Friday and an all-time peak against the AUD. The EUR/JPY fell 1 % to 123.00, coming back from an early high of 127.40 but still over the 6.5 year low of 113.62 from Monday. The EUR/USD edged up 0.2 % to 1.2705, back from a 2.5 year low at 1.2335 hit the previous day. Technical analysis GBP/CHF Since the beginning of August the GBP/CHF has been trading in a bearish trend with a Fibonacci support at 1.7608 and a resistance at 2.0812. After its break through all the middle retracement lines, the market has touched the 1.7608 support and seems to make a rebound towards the 38 % resistance line. EUR/GBP Since September the EUR/GBP has been trading in Fibonacci retracement levels. After touching the 0.8188 resistance level twice the market crossed the 0.80 level. If the market cuts the 50 % and 38 % retracement, we could expect a downtrend towards the 0.77 support line at 0.00 %. Pivot Points - Daily FX Support and Resistance Levels Daily Calendar & Key FX Events Varengold Bank IMPORTANT NOTIFICATION TO BE READ IN CONJUNCTION WITH THE CONTENTS OF THIS DOCUMENT This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational urposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.