The USD/JPY pair started strongly in today's Asian session, reaching as high as the 100.75 level, the highest so far this week. However, it fell below 100.00 again after massive sell-offs in Nikkei futures. The pair is now trading at the 100.05 level. More volatility can be expected from the pair ahead of Japan's upper house elections this Sunday. Despite this, analysts continue to expect the pair to be somewhere around 100-105 by the end of the year.
Initial resistance for the USD/JPY is at 101.16, followed by 101.41. Meanwhile, initial support is at 99.95, followed by 99.70.
The EUR/USD is also off to a strong start, and has been able to main it so far in today's session. From 1.3080, it has risen to a little over the 1.3140 level and is currently trading at 1.3133.
Main drivers for the pair today are the Producer Price Index data from Germany, and some other minor releases from the Eurozone, including Italy, Greece, and Spain.
Initial resistance for the EUR/USD is at 1.3119, followed by 1.3152. On the other hand, initial support is at 1.3057, followed by 1.3024.
Another pair that opened on a positive note is the AUD/USD. This was after the weak USD due to the Nikkei sell-off. The pair has reached highs at around the 0.9188 level so far today, and is currently trading at the 0.9170 level.
Initial resistance for the pair is at 0.9211, followed by 0.9235. Meanwhile, initial support is at 0.9095, followed by 0.9073.
In connection with the aussie, Westpac said that the Reserve Bank of Australia (RBA) might cut rates three more times by early 2014. They expect the first one to happen in August and then finally in March 2014. If this happens, the cash rates would be at 2 per cent, which could hurt the already ailing aussie.
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