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The Japanese yen plummeted on Friday as global policy makers attempted to talk down concerns around the so called "currency wars" and advised they did not intend on interfering with Japan's monetary policy efforts.
The USDJPY pair subsequently rallied around 1% after hitting technical support in the 92.21 region. EURJPY likewise experienced a 1% daily gain.
We note that the greenback has risen 17% versus the yen since November 2012.
Below, technical overviews and analysis for key stock indices, commodities and currency pairs, based on market activity at the end of today's (14 February 2013) U.S. session. This information is a comprehensive summary derived from simple and exponential moving averages along with key technical indicators shown for specific time intervals.
Cable has seen a corrective move higher, after hitting the lowest level since August 2012 (1.5628) earlier in the week. The longer term chart below (fig 2) shows the pound/dollar pair is trading within a triangle consolidation pattern and has now hit the lower trend line – a key technical area.
GBPUSD is now trading at a longer term price pivot and has closed the week above the 1.5757 previous support/resistance flip, but under the 1.5826 prior swing low (see fig 1).
With the above in mind, we would not be surprised to see an element of consolidation in this 1.5750 – 1.5830 zone in the near term.
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