USD/JPY 's Bullish Rebound
Before closing at 82.96 yesterday, a huge drop from 83.82 to 82.77 has been experienced in the USDJPY. As of the moment, the USDJPY is now testing its immediate support level at 82.96 and finally heading towards the bullish channel. This is recognize through the simple MA (21) indicator, which had made a cross over at 83.14 levels of the price at the H1 time frame, signifying a probable turn back. Meanwhile, the MACD (12, 26, 9) of the same time frame is still showing signs of a consolidation pattern between the resistance level at 83.34 and support level at 82.96, as its signal line closes its gap with the MACD line along whereas the RSI (14) is heading for a buying momentum. For the moment, though neutral position is still visible for the USDJPY pair and anticipation for a buying opportunity remains highly feasible in the following trading sessions.
EURJPY's Immediate Support at 110.74
After the drastic drop from the 113.24 line to 110.72, the EURJPY is finally giving hints of bullishness. By looking at the M30 time frame, the pair seems to move along the short term consolidation pattern with the simple MA (65), and is looking to retest the immediate support level at 110.74. Apart from that, the MACD (10, 26, 9) at H1 time frame is about rise above the signal line, whereas the RSI (14) at the same time frame had already reached the oversold position, thus stimulating a buying momentum for the upcoming trading, but anticipation for a continuous short term consolidation is still highly feasible. For the moment, a hold/buy position is still relevant for the current movement of the EURJPY, however overall bias may likewise turn into a buy proposal.
Japan's Response to Ireland's Debt Rating
During the previous session, Mitsubishi UFJ Financial Group Inc., Japan's biggest bank by market value, dropped 1.9 percent along with the Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., nation's three largest carmakers, as euro undermined to a two- month low against the yen.
As of the moment, Standard & Poor's debt rating on Ireland's debt rating may likely worsen the global economy recovery, and thus sending the yen to weaken against the Euro.
Unless it becomes clearer that things in the market will improve, concerns will remain and may likewise worsen the slow investment condition. So far, risk appetite tends to favor the commodity currencies, and as far as this concern continues, Japan will be adversely affected because it's right in the center of the conflict.