The recent announcement from the SNB (to set the Swiss Franc at minimum 1,20 against the Euro) has at last allowed a significant bounce on the pair which also benefits from the Dollar relative strengh.
Is it surprising to say that the Yen is always very difficult to understand and trade ? The USD/JPY is now back under pressure despite the Dollar rally…
With the risk aversion sentiment driving the market, the Cable has been weakening as well, breaking below 1,60 and now testing July low at 1,5780.
With a weekly close below key 1,40 support and July low (1,3835), the pair has confirmed a major trend reversal in 2011.
The sharp decline from August resulting in a quick break below parity has yet to be confirmed. For the time being, the pair continues to be well bid.
The pair has confirmed a possible long term reversal with a bounce on top of the key 0,97 level but it is still facing the strong parity resistance.
The break back above 0,8250 has validated a bullish reversal (cup&handle) which confirm a bullish outlook.
The pair continues to trade flat above its historical low (76,00) and we now wait for the market to start a meaningful move.
The pair is also under an intense downside pressure after a break below another key level at 1,60.
The pair remains under pressure ahead of the important ECB rate decision (11:45 GMT) and M. Trichet statement (12:30 GMT).