BoJ may tweak its operations again; no major policy changes
The BOJ is expected to leave its major policies unchanged at the meeting on August 8-9, unless USDJPY declines substantially, says Nomura strategist Yujiro Goto. "We think the Bank may tweak its operation slightly again to make its JGB buying operation easier" he said. This time, two new board members, Mr. Sato and Mr. Kiuchi, will attend the meeting for the first time. "If either or both of the new board members dissent against the governor, USDJPY would likely rise, but only until the market realizes that one or two dissents are unlikely to lead to any imminent radical policy shift" Mr. Goto notes. Nonetheless, "the new board members‟ inflation forecasts are likely to be more pessimistic and, thus, we think it worth watching for any changes to the BOJ's economic and inflation assessments" Nomura strategist adds. Keep an eye on any discussion about BOJ foreign bond buying too, Mr. Goto concluded.
In the European session ahead, the June UK Industrial Production and Manufacturing data will be risk event for GBP, due for release at 08:30 GMT. Later in the day, the National Institute of Economic and Social Research GDP Estimate is scheduled for release at 14:00 GMT. (fxstreet.com)
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UPCOMING EVENTS :
2012-08-07 08:30 GMT | United Kingdom. Industrial Production (YoY) (Jun)
2012-08-07 14:00 GMT | United Kingdom. NIESR GDP Estimate (3M) (Jul)
2012-08-07 18:30 GMT | United States. Fed's Bernanke Speech
2012-08-07 23:50 GMT | Japan Trade Balance - BOP Basis (Jun)
FOREX NEWS :
2012-08-07 04:21 GMT | GBP/USD hovers below 1.56 late in Asia
2012-08-07 01:48 GMT | AUD bulls should keep closer eye on FED, ECB than RBA
2012-08-07 00:57 GMT | EUR/USD to continue resisting downside dips
2012-08-07 00:24 GMT | USD/JPY seeking test of US lows; Semi-official bids near 78.00
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EURUSD : 1.23800 / 1.23803
DAILY WEEKLY MONTHLY
1.2595 | 1.2519 | 1.2443
1.2368 | 1.2298 | 1.2222
SUMMARY : Sideway
TREND : Downward penetration
MA10 : Bullish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Market stabilized yesterday after the Friday’s gains. Medium term bias is positive however today we expect correction as main scenario. Our resistance levels remain the same as yesterday. Potential of going higher is seen above next resistance at 1.2443 (R1), surpassing of this level would suggest next targets at 1.2519 (R2) and 1.2595 (R3). If it fail to go higher, we might see further retracement development below next support at 1.2368 (S1) with next target at 1.2298 (S2). Achieving of the support levels might lead to the further instrument strengthening.
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GBPUSD : 1.55719 / 1.55728
DAILY WEEKLY MONTHLY
1.5713 | 1.5666 | 1.5618
1.5574 | 1.5529 | 1.5490
SUMMARY : Sideway
TREND : Downward penetration
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Today in focus United Kingdom Industrial Production release at 08:30 GMT. Pair is quoting roughly -0.10% below its opening price and we expect increasing of the volatility later on today. Technically next support level locates at 1.5574 (S1), pushdown of the price is possible below this level. We suggest next targets at 1.5529 (S2) and 1.5490 (S3). Failure to go lower suggested support level will put in focus our resistance level at 1.5618 (R1), brake here would suggest next targets at 1.5666(R2) and 1.5713 (R3).
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USDJPY : 78.274 / 78.278
DAILY WEEKLY MONTHLY
78.77 | 78.57 | 78.37
78.13 | 77.92 | 77.70
SUMMARY :
TREND : Upward penetration
MA10 : Bullish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Today we have important news from Japan that might establish trading tone for Asian session - Japan Trade Balance at 23:50 GMT. Technically, USDJPY remain to be traded in range mode. Successful attack of next resistance level at 78.37 (R1) will provide market with a new target at 78.57 (R2). On the other hand, possible execution of protective orders below next support level at 78.13 (S1) might drive market price toward to our suggested targets at 77.92 (S2) and 77.70 (S3).
Source: FX Central Clearing Ltd, ( http://www.fxcc.com Forex Calendar | Forex Trading Strategies | ECN Trading Forex | FXCC )