Forex Round Up: The Yen and The Aussie Fall against the US Dollar

on Nov 15, 2012

**The Yen keeps on falling amid expectations for unlimited BOJ easing**

USD/JPY rose to a 7-month high, reaching 81.27 earlier today. Fueled by comments by Japan’s opposition Leader Abe, the pair continued climbing up to 81.48, until eventually settling around the 81.25 mark. Abe, who is considered to be the favourite to win the elections on December 16 and become the country’s next Prime Minister, stated his support for ‘unlimited BOJ easing’ and an inflation target of ‘up to 3 percent’. The Yen has been suffering against the US dollar for the last two days, depreciating by almost 190 pips. The problems for the Japanese currency started yesterday, when the current Prime Minister Noda announced that he will dissolve Parliament, triggering an election the Liberal opposition are expected to win.

The poor performance of the Japanese currency was also evident against the Euro, as EUR/JPY soared to a 2-week high of 103.94, just 6 pips of the resistance level of 104. The pair is now trading in the 103.80 zone.
**The Aussie under pressure from the dollar**
The beginning of the American trading session on Thursday saw the AUD/USD sinking fast, falling as low as 1.0306 (intraday minimum). Since then the Aussie has managed to recover some of its positions against the greenback and is currently being traded at 1.0336/36. Still, this represents a 0.36 percent decline from opening levels.

**The Euro marches towards 1.2800**
!m[The Sterling and the Euro manage to pull back](/uploads/story/827/thumbs/pic1_inline.png)After experiencing a period of stagnation, being traded in the 1.2750-70 range for a couple of hours, the EUR/USD pair jumped beyond its previous intraday high of 1.2773 and broke the 1.2800 threshold at 1.2803. Currently the pair is in the 1.2790 area. The breaching of this psychological level may have been due to Fed’s Lacker’s statement that the US could grow more than 3% if a grand bargain is reached on the US deficit.

According to Windsor Brokers analyst Slobodan Drvenica, “regain of significant 1.2800 resistance zone and 200 day MA, is seen as a trigger for extension 1.2880/1.2900”.
**The Sterling soars against the US Dollar**
The British Pound has bounced back against the USD, after reaching a new intraday high of 1.5880, jumping 50 pips in one hour. Valeria Bednarik from reported that the 1.5850 “level has offered short term resistance for most of the day,” and with the current upward movement should be considered a short term support for the pair.
The GBP/USD is now resting in the 1.5870 area, with resistance levels set at 1.5880 1.5915, and supports at 1.5850, 1.5820 1.5770.


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