Gbp/jpy Broke Yesterday

www.sunbirdfx.com Another day of uncertainty went through Wall Street, as the investors were disappointed by the core retail sales, but encouraged by the Empire State Manufacturing Index. Today they will focus on the FOMC meeting minutes and building permits, as bad news might cause sharper declines. We keep seeing bullish reversals during the trading session, which means that there are buyers who want to take advantage of the recent declines, which might cause a bullish reversal eventually. However, it seems that a break-down of the current week's low will make everybody believe that a downtrend movement has begun. USD/JPY The USD reached the support at 79.50 against the JPY, which was a former break-up area. The Yen has failed to break-down this support for several days and ...

Commentary of the GBP/JPY pair : The pair GBP/JPY has broken yesterday the support at 130.15, giving us a sell signal. All indicators are bearish. We continue to advise short positions as far as 130.50 is resistance. The breakout of 128.85 will give a new sell signal and open the way towards 127.70. In case of return above 130.50, we will be neutral between this level and 131. The breakout of 131 will give a new buy signal. See the previous analysis of the GBP/JPY pair of April 30th, 2012 GBP/JPY Analysis

GBP Outperforms, CAD Higher ahead of Monetary Policy Report USD is mostly firmer against its G10 counterparts and the dollar index has rebounded from the base of its daily ichimoku cloud. Range trading is likely to continue while the DXY stays within its cloud which sees the base and top around 79.50 and 79.95 respectively. The only data release of note today was weekly mortgage applications which rose by +6.9% from the prior -2.4% as the decline in borrowing costs (30-year rate fell to match a record low 4.05%) resulted in refinancing. The UST yield curve is flatter with 10-year Treasury yields remaining below the 2.00% level while 2-year yields are slightly higher and US equity futures are pointing to a negative open. The buck is currently strongest against the JPY and weakest against ...

Commentary of the GBP/JPY pair : A strong correction occured yesterday on the pair GBP/JPY who got back above the resistance at 129. The pair has broken its bearish slant (black line). All indicators are bullish. We are neutral on the pair between 129 and 129.59. We advise to wait an exit of this range to take position: - Long above 129.59. The breakout of 130.15 will give a new buy signal - Short below 129. The breakout of 128 will give a new sell signal. See the previous analysis of the GBP/JPY pair of April 17th, 2012 GBP/JPY Analysis

www.sunbirdfx.com The US stock markets closed on mixed territory yesterday as Dow Jones rose 0.15% and S&P 500 shed 0.16%. The declines came on the background of disappointing continuing jobless claims data and on the beginning of the trading session it looked like the stocks were about to slide sharply, but eventually they closed higher. One of the signals for that the investors have started to realize their recent investments is the fact the Apple lost 1.2% yesterday, which is something that we have not seen in a while. Today is the last day for the week and since investors do not like to keep stocks for the weekend in times of uncertainly, the indices might resume sliding today. USD/JPY The momentum that the USD had against the major currencies in the recent days has weakened ...

Commentary of the GBP/JPY pair : The pair GBP/JPY broke yesterday the support at 131.50 to reach the next support at 130.15. Then, the pair made a pullback on 131.50 as resistance. All indicators are bearish. The pair is currently testing its bullish slant (purple line). We are neutral on the pair between 130.15 and 131.50. We advise to wait an exit of this range to take position: - Long above 131.50. The breakout of 133 will give a new buy signal - Short below 130.15. The breakout of 129 will give a new sell signal. See the previous analysis of the GBP/JPY pair of March 29th, 2012 GBP/JPY Analysis

www.sunbirdfx.com Wall Street closed another green day as indices rose 0.2% in average on the background of better than expected unemployment claims data. The most significant news came yesterday on the ECB press conference as the ECB president Mario Draghi revealed that the Greek government made an agreement with the private sector that will allow Greece to receive additional 130 billion Euros as part of the bailout plan. USD/JPY On the recent weekly analysis, we analyzed the pair and mentioned that it faced an important test of breaking down the support at 76.0. We estimated that if the Yen did not break the support, the USD would rise and reach the resistance of the downtrend. Eventually, the price hit this target yesterday. The risings of the USD against the Yen were surprising ...

Commentary of the GBP/JPY pair : The pair GBP/JPY broke yesterday a strong resistance at 121, giving us a buy signal. The pair is still moving above its bullish slant (purple line). All indicators are bullish. We continue to advise long positions as far as 120.50 is support. The breakout of 121.85 will give a new buy signal and open the way towards 122.50. In case of return below 120.50, we will wait the breakout of 120 to advise short positions. See the previous analysis of the GBP/JPY pair of February 6th, 2012 GBP/JPY Analysis

Commentary of the GBP/JPY pair : The pair GBP/JPY has continued yesterday its bearish movement and broke the support at 120, giving us a new sell signal. Currently, the pair is moving on this level. All indicators are bearish. We continue to advise short positions as far as 121 is resistance. The breakout of 119.32 will give a new sell signal and open the way towards 118.63. In case of return above 121, a buy signal will be given. See the previous analysis of the GBP/JPY pair of January 30th, 2012 GBP/JPY Analysis