Januari 7, 2014 - EUR/USD: general analysis | USD/JPY: analysis and forecast

EUR/USD: general analysis Current trend Fundamental data, which has been issued by European Bureau of Statistics this year, does not contribute to the growth of European currency. Volume of private lending in Eurozone fell by 2.3% on annual basis, which is the lowest index in 20 years. Despite measures of the monetary authorities, business activity in European countries continues to decline; therefore we cannot count on the rapid recovery of economy. The key news of today is as follows: unemployment rate in Germany and consumer price index in EU. Levels of support and resistance On Monday the pair EUR/USD failed to overcome important resistance level of the moving average with the period 200 and since then has traded downward. However, the level of 1.3650 is still the target of the “bulls”. If Euro manages to consolidate above this level in the near future, the pair may grow up to the level of 1.3745. The nearest support level is 1.3600. Trading tips “Bearish” trend is strong in the market; therefore it is recommended to open short positions after breakdown of support level of 1.3600 with protective orders near 1.36200 and a target of 1.3511. Dmitry Agurbash Analyst of LiteForex Group of Companies ----------------------------------------------- USD/JPY: analysis and forecast Current trend The pair USD/JPY has been trading within a descending channel since the beginning of the week. On Monday the pair has hit the lows at 103.90. However, today USD/JPY is rising again due to the nomination of the Janet Yellen as the leader of US FedReserve. Support and resistance The upper border of the channel won’t let the pair up, but the course can reach the middle MA of Bollinger Bands indicator at 104.65 and then pull back to the levels of 104.15 and 103.80 (lower border of the channel). On the four-hour chart technical indicators give controversial signals. Bollinger bands are directed downwards, the price chart can’t break through the middle MA. MACD histogram is in negative zone and can soon cross the zero line from below, forming a signal to buy. Stochastic lines are directed upwards. Trading tips It is recommended to open short trades at current price with take-profits around 103.80. Dmitriy Zolotov Analyst of LiteForex Group of Companies