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Forex: GBP/JPY breaks above 149.50/60 resistance and hits 150.00

The Pound is taking advantage of a softening Yen and GBP/JPY rally from 1.46.65 low on Tuesday has extended above Jan 8 and 11 high at 149.50/60 on European session, reaching a fresh 2-week high at 150.00.

At the moment, the pair remains right above 149.60 with next resistance levels at 150.00 (session high), and above here, 15040 (200-day MA) and 1.5075 (Dec 31(Jan 4 high).

On the downside, below 149.50/60, support levels lie at 148.85/95, and then at 148.05/20 area (Jan 8/9 low).

ForexLive European Wrap; USD claws back a little ground

China says its internet is open and encourages development of internet. Opposes cyber hacking. Welcomes foreign firms participating in internet development "according to law" Obama bank fee to hit 50 of biggest U.S. financial firms Merkel says Greece means euro faces "difficult" time French PM Fillon: France will almost double its 2010 growth forecast German final December CPI revised to +0.8% m/m, +0.9% y/y, firmer than previous +0.7%, +0.8% respectively German BDI industry association expects 2010 GDP of 1.5-2.0%, but still sees risk of credit crunch in Germany Greek 3 year stability plan will be sent to EU commission on Friday. Sees 2010 deficit cut by 4% points; 2011 deficit cut to 5.6% of GDP; 2012 deficit cut to 2.8% of GDP - FinMin Greek October unemployment 9.8%, up from 9.1% in September Euro zone November industrial output +1.0% m/m, -7.1% y/y, better than median forecasts +0.5%, -8.5% respectively The USD is generally a little firmer this morning. EUR/USD having started around 1.4535 ran into BIS selling right from the get go. Talk of sell orders lined up at 1.4550 through 1.4580 didn't help matters. We slipped very slowly lower in subdued trading before strong selling from a US custodial helped accelerate the process. We've been as low as 1.4482 so far, presently at 1.4487. Talk of buy orders layered at 1.4480 down to 1.4450 will be lending some tenuous support. ECB rate decision now awaited, nothing really expected. Cable started around 1.6290 and advanced to a session high 1.6312 where it duly ran into well-touted robust ACB selling interest. It's been all downhill from there. We're presently at 1.6260, next support at 1.6250. USD/CHF is up at 1.0210 from an early 1.0170, with decent Swiss corporate buy interest noted throughout the morning. USD/JPY fractionally firmer at 91.85. Been up to 92.00/05 area where it duly ran into Japanese exporter sell interest

EUR/GBP holds above 0.8900 ahead ECB

After falling around 35 pips throughout the European session from intra-day high at 0.8935 to ease all of previous gains and reach 0.8900 as daily low, the EUR/GBP is trading on consolidation mode holding above 0.8900 ahead the European Central Bank interest rate decision.


European Central Bank is expected to hold unchanged its interest rate at 1.0% today's Monetary Policy Committee meeting, Mr. Trichet will hold later at 13:30 GMT for hints about the bank's assessment about quantitative easing measures and how the ECB will begin the exit process.


EUR/GBP capped its recovery from yesterday's low at 0.8893, 1-week low, at 0.8935 during the Asian session with the pair losing gains and reaching intra-day low levels. Currently the pair is trading around 0.8900/10, just below opening price action at 0.8914.


“We still don't have a rally here to signal the very high Wed.” affirms the FXMarketAlerts Team in its latest EUR/GBP report, “volume as l/t buying- this am.'s small rally was capped at Wed's pivot and the EUR therefore remains under some pressure at .8915~.”



“There's still a chance that the EUR dips to .8880 from here.” concludes FXMarketsAlerts, “A strong rally soon is required to keep us bullish for break out upward from the 1 month apex.”

Close Your Eyes

Okay, so it doesn't look like anything at all is happening as of yet. Personally, I'm scalping the EURUSD on the 1 min chart this evening.It seems that nobody is willing to assume that the house will pass the bailout bill this time around. So, once again, we find ourselves in a state of financial stasis. In fact, given the rise that occurred on the original announcement, it may just be that we are priced in already.If so, that means there is really only a downside, which we'd see on failure.Who knows?Cover your assets! ;)

Forex Turmoil: Still On The Sidelines

During the last few weeks of topsy-turvy price movements I've been playing it safe. I like to buy carry trade pairs, but they've been heading down a lot.

Carry Trade Panic Selling?

Did anyone notice the panic selling out there?All kinds of carry trades unwound several hundred points in a very short period of time. Speculation in the Forex news rags suggests that losses due to the falling stock exchanges forced people to unwind their carry trades to cover their margins.In any case, after days of regimented downward movement, the sudden fallout represented a panic moment -- for someone. In the short term, at the very least, this should represent opportunity. I've stuck my toe in.