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Yen Closes Up On Easing Speculation

Published 12/05/2012, 10:53 AM
EUR/USD
The pair settled the session lower, after less-than-impressive demand for the latest debt auctions by the Spanish Treasury caused yield spreads to widen. In addition to that, the release of Services PMIs underpinned the view of a prolonged, but albeit a shallow recession in the bloc. In terms of technical levels, supports are seen at 1.3047 and then at the 10-DMA line at 1.2973. On the other hand, resistance levels are seen at the 21-DMA upper Bollinger level at 1.3131, followed by 1.3140 and then at 1.3173.

GBP/USD
The pair settled the session little changed after renewed concerns over the peripheral Euro zone put pressure on EUR and related crosses, which in turn offset the release of lower-than-expected UK Services PMI. Still, the report also revealed that staffing levels in the UK service sector increased for the first time in three months. Also, the Autumn statement from Osborne came in broadly in line with market expectation and as such had very limited impact on UK traded asset classes. In terms of technical levels, supports are seen at the 55-DMA line at 1.6047 and then at 1.6039 which is the 10-DMA line. On the other hand, resistance levels are seen at 1.6133/76 and then at 1.6200.


USD/JPY
The pair settled the session higher as market participants resumed speculating over further policy easing by the BoJ. The opposition leader Abe is widely expected to win elections in mid-December and in turn encourage the central bank to conduct aggressive policy easing actions. In terms of technical levels, supports are seen at 81.80/68 and then at 81.50. On the other hand, resistance levels are seen at 82.50/75 and then at 83.00.
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