Yen breaks out as market nerves ease

February 11, 2015

We’ve been harking onto our readers to watch out for the potential breakout of the USDJPY in the last two market wraps. And now it has happened. The timing may be a little surprising as the breakout happened during the European session and was not driven by news or events. The rally can partially be attributed to the easing of safe-haven needs as the gap between Greek and EU leaders are narrowing. Once USDJPY rose above 119.20, buy stop orders rushed in and pushed the level to a new day high of 119.60. The Yen may depreciate to former highs at 120.80 and 121.80.

USDJPY 110215 | Vantage FX

Gold remains under $1240 per ounce as the Fed’s first rate hike is closer and market fears on Europe fade. The medium term outlook will be bearish if US economic data keeps up its strength. The 1220 support will be the next target of bears.

XAUUSD 110215 | Vantage FX

As the market entered the week with less important events, the consolidations of major currency pairs continue. The Euro Dollar tried to fall below the bottom of recent two-week sideway at 1.1270, but failed again. The pressure on Euro remains heavy. Personally, I feel the support may not hold for long, considering the fundamental factors have been changed.

EURUSD 110215 | Vantage FX

Back to stock markets, the Shanghai Composite rebounded by 1.5% to 3142. The Nikkei Stock Average slid 0.36%. Australian ASX 200 lost 0.25% to 5801. In European markets, the UK FTSE was down 0.12%, the German DAX bounced 0.85% and the French CAC Index gained 0.96%. US stocks broadly gained as Greek government and EU showed willingness to compromise. The S&P 500 closed 1.07% higher to 2069. The Dow rose 0.79% to 17869, and the Nasdaq Composite Index surged 1.3% to 4788.

Not much major data will be released today. Australian Home Loans will be out at 11:30 AEDST. Market participants may wait for news from Eurogroup Meetings.

Have a great trading day!
Anthony


Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd, does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. The research contained in this report should not be construed as a solicitation to trade. All opinions, news, research, analyses, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on the service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Social

Free Daily Market Update

Live Spreads

SymbolBidAskSpread

Spread

Sign up to the latest forex news and daily FX trading setups

Get started with a FREE $50,000 demo account