Forex Technical & Market Analysis FXCC Jul 23 2013

by **Admin** Tue Jul 23, 2013 7:41 am

Forex Technical & Market Analysis FXCC Jul 23 2013

Bank of Japan stands ready to inject further stimulus

The Bank of Japan is prepared to provide further easing to the economy should signs fail to emerge about an economic recovery, including an inflation mandate of 2% in the short-run. According to BoJ board member Takehiro Sato, more stimulus is a real possibility if the economy's recovery is threatened, naming a few risks such as slower-than-expected growth in China. "A high degree of uncertainty remains concerning the global economy, and I see risks to the economic outlook as somewhat tilted to the downside," Sato said.

"The BOJ does not exclude the implementation of additional measures and will not hesitate to fine-tune its policies flexibly when unexpected tail risks materialise," Sato added in a speech to business leaders in Fukushima, northeastern Japan. Sato also said the 2% inflation should be seen as a flexible target, subject to change in the 2-year projections, a timeframe which had been repeatedly mentioned by BOJ governor Haruhiko Kuroda in past meetings. "If the inflation rate is projected to stabilise within a certain range, with the median being 2 per cent price growth, the main objective of the bank's policy will have been fulfilled," Sato said. Mr Sato, an economist who joined the BOJ board last year, was nonetheless more optimistic about japan’s economy from a year earlier, saying a recovery was "coming into view", presenting a "window of opportunity" to overcome deflation.
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FOREX ECONOMIC CALENDAR :
2013-07-23 08:30 GMT | UK. BBA Mortgage Approvals
2013-07-23 12:30 GMT | Canada. Retail Sales
2013-07-23 13:00 GMT | USA. Housing Price Index
2013-07-23 14:00 GMT | EMU. Consumer Confidence

FOREX NEWS :
2013-07-23 03:27 GMT | EUR/JPY back around 131.50 on Euro strength
2013-07-23 02:55 GMT | AUD/USD struggling above 0.9280 highs
2013-07-23 02:42 GMT | GBP/USD conquers 1.5304 resistance – now targeting key level at 1.5432
2013-07-23 02:16 GMT | EUR/USD faces risk for extension into 1.20/1.18 - JPMorgan

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EURUSD :
HIGH 1.32072 LOW 1.31827 BID 1.31970 ASK 1.31975 CHANGE 0.09% TIME 08 : 37:12

OUTLOOK SUMMARY : Up
TREND CONDITION : Up trend
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Medium

MARKET ANALYSIS - Intraday Analysis

Upwards scenario: Yesterday high at 1.3217 (R1) limits further uptrend establishment. Break here is required to enable next interim target at 1.3243 (R2) en route towards to final aim for today at 1.3268 (R3). Downwards scenario: Depreciation below the support level at 1.3177 (S1) would suggest next intraday target at 1.3152 (S2) and any further weakening would then be limited to final support level at 1.3126 (S3).

Resistance Levels: 1.3217, 1.3243, 1.3268
Support Levels: 1.3177, 1.3152, 1.3126

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GBPUSD :
HIGH 1.53767 LOW 1.53548 BID 1.53667 ASK 1.53673 CHANGE 0.05% TIME 08 : 37:13

OUTLOOK SUMMARY : Up
TREND CONDITION : Up trend
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium

Upwards scenario: Fractal level at 1.5385 (R1) offers next resistive barrier. Penetration above that mark might trigger upside pressure and expose our next resistive mean at 1.5415 (R2) en route towards to final target for today at 1.5445 (R3). Downwards scenario: Though, possibility of correction is high. Price devaluation below the support at 1.5345 (S1) would initiate bearish pressure. On the way our next interim support at 1.5315 (S2) en route to final target at 1.5285 (S3).

Resistance Levels: 1.5385, 1.5415, 1.5445
Support Levels: 1.5345, 1.5315, 1.5285

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USDJPY :
HIGH 99.68 LOW 99.143 BID 99.465 ASK 99.467 CHANGE -0.2% TIME 08 : 37:13

OUTLOOK SUMMARY : Down
TREND CONDITION : Down trend
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Medium

Upwards scenario: USDJPY remains under the consolidation mode after the initial uptrend formation. Strengthening above the next resistive structure at 99.70 (R1) might activate medium-term bullish pressure and expose our intraday targets at 99.86 (R2) and 100.02 (R3). Downwards scenario: Further downside expansion might face next hurdle at 99.28 (S1). Break here is liable to initiate stronger bearish pressure and validate our immediate targets at 99.13 (S2) and 98.98 (S3) in potential.

Resistance Levels: 99.70, 99.86, 100.02
Support Levels: 99.28, 99.13, 98.98

Source: FX Central Clearing Ltd,( http://www.fxcc.com )