Forex: USD/JPY holds downside above 93.00

The USD/JPY has been moving down since early in the Asian session, from 93.50 area to 92.92 low, and although the European morning brought the pair back to 93.00 ground not much movement came after that. The pair remains limited under a tight range, around 93.06/25, but at the moment of writing there is a surge of bids that may attempt at extend above the upper side of the band.

Investors will now be eyeing the US ISM non-manufacturing PMI, due at 15:00 GMT, but the BoJ meeting on Thursday and US nonfarm payrolls on Friday will be more decisive for the direction of the USD/JPY.

“The intraday outlook is bearish below 93.20 resistance, as the pair is heading towards 92.03, en route to 90.85 low”, wrote Deltastock.com analyst Stoyan Mihaylov.

Mar 5, 2013

Forex Flash: Gilts buoyed by support – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “The price of Gilts has two support pivot points at 116.97 and 116.54, as yesterday’s price action saw Tweezer top, suggesting a pull back for the time being. In the long term, a pennant on a daily chart suggests there would be good chances of extending the rally to 118.37 onto 119.00. There might be a pullback in the near term, but it is likely to be a temporary one. After that more upside to 118.40 onto 119.00 would be likely. These are Fibonacci levels on a weekly continuation chart. A noteworthy stipulation would be a sustained break below 116.54.”

Session Recap: Euro recovers but lacks momentum

The European session was mostly driven by the release of European PMI's providing currencies some support. EUR/USD rose toward 1.3180 and Cable to 1.5200 but crosses lacked follow-through. Other major crosses remain well within their recent ranges as investors hold a cautious mood ahead of the ECB and BoE decisions and the so-awaited NFP report. Stocks are broadly higher in Europe, while US equities opening in record territory ahead of the ISM services data.