forex

Technical analysis of Silver for March 11, 2016

Technical outlook and chart setups:Silver is looking unchanged now trading at the levels of $15.50/60 looking for an opportunity to push lower as expected earlier. The metal is expected to push lower towards at least $14.60 until prices remain below $1... [...]

Negative rates put more pressure on Japanese banks’ nets interest margin – Fitch

The latest Fitch report highlights impact of Japan’s negative interest rates policy on the country’s banking system.

Key Findings from the report:

Negative interest rates put more pressure on Japanese banks' nets interest margin (NIM)

Short-term direct impact is limited as the negative interest rate is applied only to additional funds placed at the BOJ

Impact of negative interest rates on mega banks to be neutral, with the impact being greater for the smaller, unrated banks

Negative rating implications may stem from other factors, such as failure of Abenomics, worse-than-expected deterioration in the global economy

In the medium to longer term, lower reinvestment yield on assets will lead to net interest margins erosion

The latest Fitch report highlights impact of Japan’s negative interest rates policy on the country’s banking system.

(Market News Provided by FXstreet) [...]

USD/JPY recovery remains capped below hourly 200-SMA

The bulls appear to have given up in the Asian trades this Friday, after having several attempts to break above the stiff resistance placed just shy of hourly 200-SMA at 113.40.

USD/JPY supported at 113

The dollar-yen pair is still licking the post-ECB wound and now struggles to extend its recovery mode further beyond 113.35-40 zone as the subdued trading on the Asian markets continue to underpin the safe-haven demand for the yen. At the time of writing, USD/JPY trades muted around 113.20, while Japan’s Nikkei drops -0.90% to 16,705 points.

The major is attempting a recovery from ECB induced lows reached Thursday at 112.63 after the greenback slumped to fresh four-week lows against its major peers.

Meanwhile, the yen pays little heed to the downbeat Japan manufacturing index and remains better bid amid mild risk-averse conditions this session. Later today, nothing of note for the major except for the US import prices data, which is expected to have limited impact on the prices.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 113.48/50 (Mar 9 high/ psychological levels). A break above the last, the major could test 114 (round number). While to the downside, the immediate support is seen at 112.80/79 (daily low) and below that at 112.44/23 (Mar 8 & 9 Low).

The bulls appear to have given up in the Asian trades this Friday, after having several attempts to break above the stiff resistance placed just shy of hourly 200-SMA at 113.40.

(Market News Provided by FXstreet) [...]

Technical analysis of Gold for March 11, 2016

Technical outlook and chart setups:Gold has managed to push higher and test recent highs of $1,279.00 before pulling lower again. The metal had push through the levels of $1,283.50 earlier, but dropped lower towards $1,277.00/78.00. As depicted here, t... [...]

Technical analysis of EUR/JPY for March 11, 2016

Technical outlook and chart setups:The EUR/JPY pair rallied through the levels of 126.80 yesterday. The pair is trading at 126.50 now, looking for an opportunity to reverse lower below 122.00. Please note that the rally from 122.00 is likely to be corr... [...]

Technical analysis of GBP/CHF for March 11, 2016

Technical outlook and chart setups:The GBP/CHF pair has dropped lower and is currently trading at 1.4040. The pair might have completed its correction and should be preparing to resume its rally towards the level of 1.4300. Please note that the recent ... [...]

Gold clocks fresh 13-month highs above $ 1283

Gold futures on Comex extended its bullish run into the Asian trades and jumped to fresh multi-month highs on the back of increased flight to safety amid falling Asian stocks.

Gold adds to post-ECB/Draghi rally

Currently, gold rises 0.64% to 1281, having posted fresh thirteen-month highs at 1283.70 some minutes ago. The bullion broke the overnight consolidation box to the upside and clinched the highest levels since Feb 2015 as the bulls received fresh impetus from increased safe-haven bids amid negative performance on the Asian indices. Japan’s Nikkei is down over 1%, Australia’s ASX drops -0.3%, while the Shanghai Composite index slides -0.66%.

Moreover, ongoing upward trend in the gold fund inflows also remains supportive of the gold prices. Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, continue to trade at multi-year highs.

The yellow metal witnessed nearly $ 40 massive rally on Thursday after the euro regained momentum and surged 400-pips against the US currency following Draghi’s comments at the ECB press conference. Draghi indicated in his speech that further rate cuts in the euro zone are unlikely and thus, poured cold water on the negative rates policy expectations.

Next of importance for gold remains the crucial FOMC decision, which may set further direction on the price-action. It’s widely anticipated that the Fed may stand pat at its policy decision due next Wednesday.

Gold Technical Levels

The metal has an immediate resistance at 1284.70 (Feb 2015 High) and 1300 (round number). Meanwhile, the support stands at 1270.50/1270 (daily low) below which doors could open for 1266.40 (5-DMA).

Gold futures on Comex extended its bullish run into the Asian trades and jumped to fresh multi-month highs on the back of increased flight to safety amid falling Asian stocks.

(Market News Provided by FXstreet) [...]

EUR/JPY up to the 4hr 200 sma post ECB

EUR/JPY is consolidating the upside where the cross rallied from the 200 sma on the 1hr chart on the back of the ECB and the euros eventual demand.The cross has extended the recovery from the 122 handle and burst through the end of last month's resista... [...]