Yen Continues To Weaken

The USD/JPY continues to increase despite the weaker USD with its resistance at 103.35. The disappointing Japanese data has mainly drive the pair and its Tertiary Industry Activity has indicated a reduction of 0.7%. If the pair is capable of breaking the resistance, this may increase up to 103.75 levels. After the Japanese Core Machinery Orders will be announced, this may cause the pair to bounce back on its resistance.

The EUR/USD pair continued to move on an upward trend on with a resistance of 1.3735. There was a reduction of -1.2% in the German Industrial production data instead of the expected increase of 0.8%. However, following this data, the pair did not move in the opposite direction but kept on an upward trend.

The FOMC member James Bullard made a speech to the investors stated that the U.S. labor market which was depicted by the unemployment rate has improved from its 8% down to 7% within the 14 months. The non-farm payrolls also rose from 141K to 189K. His speech focused on the labor market and further indicated that the improvement and selling the US Dollar may just be temporary since the greenback is profiteering from tapering itself.

Mario Draghi’s is to conduct a speech at 12.00PM (GMT) and if the deposit rate is negative this may cause the pair to fall. Currently the pair has a resistance of 1.3775 and a support of 1.3675.

The USD weekend against the GBP/USD moving back to the level of 1.6400 after reaching a level of 1.6460 marking it as the highest peak since August 2011. There was no economic data released and this saw the pair being traded with little volatility. The volatility is expected to rise according to several important economic events.

The GDP should indicate an increase of 0.7% and the U.K. Trade balance being released may show a 9.3B deficit whilst U.K. Manufacturing Production will be 0.4%. Also, U.S. JOLTS Job Openings will give out a clearer picture of the labor market.