EUR/JPY Mid-Day Outlook

Short term outlook in EUR/JPY remains bullish with 129.85 support intact. Current rise from 124.35 is still in favor to extend further towards 137.38 resistance and above. Nevertheless, we're still expecting strong resistance near to 50% retracement of 169.96 to 112.10 at 141.03 and bring reversal. On the downside, below 129.85 support will suggest that rise from 124.35 has completed and will flip intraday bias back to the downside. Further break of 124.35 support will now be an important signal that whole rise from 112.10 has finally completed and will turn short term outlook bearish.

In the bigger picture, there are some interpretations that carries even probability. Whole down trend from 08 high of 169.96 has either bottomed at 113.63 or 112.10 and rise from 112.10 could either be the first leg, the third leg or the whole correction to such medium term decline. But in any case, such rally from 112.10 should terminate between 50% retracement of 169.96 to 112.10 at 141.03 and 61.8% retracement at 147.85 and bring down trend resumption. Based on the time spent on the consolidation so far, below 124.35 will be an early alert that medium term fall is resuming and will turn focus back to 112.10 low for confirmation.

Forex: Dollar keeps falling; USD/CHF reaches 5-month low

While markets holds gains dollar can’t stop falling. Swiss Franc is rallying. USD/CHF now is being traded at 1.1088 reaching a 5-month low. If the pair maintains this level it will be the lowest close since January 8th. So far today the pair is down almost 2% with a free fall of more than two hundred pips. Next resistance level could be found at 1.1060.

The Swiss Franc also rose against the euro. EUR/CHF broke support zone at 1.5090 and fall to 1.5060 only 5 pips above May lows. The Swiss has recovered yesterday loses and now is heading to a weekly gain to the euro.

Forex: Dollar plunges; EUR/USD at 1.3630

Dollar is in a free falling across the board. EUR/USD recently went above 1.3600 and kept rising reaching at 1.3630 the highest price since March 23rd. For the day the pair has raised more than two hundred pips representing an increase of 1.76% for the day.

GBP/USD flight above 1.5200 to 1.5215 a new 5-month high. The pound is stronger and gaining 1.20% for the day. Also against the yen the dollar is suffering. USD/JPY rallied downside after the pair broke below 98.75 to 98.30 where the dollar rebounded. Now is at 98.47 down 0.85% for the day.

GBP/USD: Pound drops to 1.5050 after BoE monetary policy decision

BoE monetary policy decision has weighed on the Pound which has dropped to afresh intra-day low at 1.5050 from levels around 1.5065 before the Bank released its decision

On the downside, if the Pound consolidates below 1.5070 previous intra-day low, next support level could come at 1.4980/90 (May 6 low); below there, 1.4945 (Apr 30 high). On the upside, resistance levels remain at 1.5165 (May 5 high) and above there, 1.5200 intra-day high and 1.5370.

GBP/JPY has also dropped on the back of BoE’s monetary policy announcement, and the Pound declined from 150.90 to 149.30 although the Pound seems to be picking up to levels around 150.00. Resistance levels lie at 151.50 and 151.75. Support levels lie at 149.90 and 149.60.

Forex: EUR/GBP rises above 0.8820 after BoE monetary policy decision

The EUR has won around 65 pips against GBP after the BoE released its decision
of hold unchanged its interest rate at 0.50%, decision was in line of expectations. EUR/GBP climbed up from 0.8790 to reach 0.8855, intra-day high. Currently the pair is trading around 0.8820/30, 0.40% above today's opening price.

The Bank of England has decided to leave its official bank rate unchanged at 0.5%at its May monetary policy meeting and to continue with the program of asset purchases financed by the issuance of central bank reserves and increase its size by GBP50 billion to a total of GBP125 billion.