USD/JPY Fails to Break 100.00, EUR/USD Drops

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Just last week, the USD/JPY pair seemed poised to break the psychological resistance of 100.00. It was hovering above the 99.50 mark at around 22 Apr until the middle of the week. However, it took a massive dive later in the week to 98.00 levels. The pair is currently at 97.44, with support seen at 97.35 and resistance at 98.13. On a long-term view, however, analysts still have a positive outlook for the pair.

Meanwhile, the EUR/USD fell after disappointing economic news from the Eurozone. Germany saw a 4K unemployment change in April, which was contrary to a consensus of just 2K. Still, the figure was better than the change in March, which was 13K.

An hour prior to the announcement, the pair rose to a high of 1.31184. This quickly dropped, however after the announcement, dragging the EUR/USD to 1.30577. The pair's recovery was aided somehow by the EU's March unemployment rate, which rose only slightly to 12.1% from the previous 12.0%. The announcement was in line with earlier predictions. Currently trading at 1.3069, support for the EUR/USD is seen at 1.3065, while resistance is at 1.3151.

Later today, the US will also release its Consumer Confidence data for April (2:00pm GMT). March's figure is at 59.7 and is expected to rise a little to 60.8. Those trading the USD should naturally watch out for this data.

There are also a number of important events this week that are worth looking out for. Tomorrow, for example, the Fed will announce its interest rate decision. It will be followed by the ECB's interest rate decision the next day, with a cut of 25bps seen from 0.75% to 0.50%. The week would then end with the US unemployment rate for April, which is seen to remain at 7.6%.

By FX Strategy Team, Published on 30th of April 2013
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