Forex Flash: USD/JPY with tough resistance but targets 101.27/67 - Commerzbank

FXstreet.com (Barcelona) - Commerzbank analysts are still biased to the upside as the USD/JPY continues to probe at the 99.70/100.00 recent high, Fibonacci retracement and psychological resistance. “This is tough resistance. Intraday dips lower should find support now at 97.50 and be contained by 96.45. Failure here would imply a retest of trend and cloud support at 94.70/53”, wrote analyst Karen Jones, targeting 101.27/67 (the 1999 and 2005 lows). “This is expected to hold the initial test. Should this be cleared this will see a target of 105.50 engage, this is the 61.8% retracement of the move down from the 2007 peak”, she said.

Apr 25, 2013

Forex Flash: BoE comfortable in holding policy after UK Q1 GDP surprise – TD Securities

Today’s publication of UK Q1 GDP allowed the UK economy to escape the stigma of the dreaded “triple-dip” recession, with a +0.3% quarterly expansion and beating consensus expectations of +0.1%. “The unexpected strength came from the services side of the economy with an inexplicable +0.6% aggregate gain there, and a particularly notable 1.4% increase in the transportation and communication sector, which is completely at odds with the reports of poor weather disrupting the distribution channels”, wrote analyst Jacqui Douglas, adding that this upside surprise seems to be one that will stick, rather than pull expectations out of Q2, “and we would expect GDP to linger around this same pace of growth in the second quarter”.

Forex: USD/CHF testing support at 0.9444

The USD/CHF dropped earlier today during European trading, falling off the 0.9460 handle. However, since then the pair has been completely sideways, failing to derivate much from its present course, which is hugging support at 0.9439/41 in these moments.