Asian Forex Session Overview

We’ve had a quiet Asian session and traders are cautious at this moment as Greek leaders failed to reach unanimous consent on all points of a new rescue plan and the final decision is expected to be made later today. Besides, ECB and BOE are scheduled to announce their new interest rate decisions today. It’s widely expected that ECB and BOE will keep their benchmark interest rates unchanged. 

In addition, there were some important statistic data during the session. Among them, China’s CPI unexpected rose by 4.5% YoY in January vs an expectation of 4.0%. In December, the consumer prices rose 4.1% YoY. The unexpected acceleration of inflation may curb China’s efforts for promoting economic growth. Meanwhile, China’s PPI rose 0.7% YoY in the same month, the smallest gain since December 2009. In Japan, the nation’s machinery order dropped by 7.1% MoM in December. In South Korea, Bank of Korea kept its benchmark interest rate unchanged at 3.25%.

In stock market, Nikkei 225 Index declined 0.15% today; China’s Shanghai Composite Index slid 0.10%; Hong Kong’s Hang Seng Index slid 0.3% at the time of writing; Australia’s ASX 200 Index declined 0.18%.

EUR/USD:

The pair started the session with a decline but the tendency was ended after the pair touched its session low 1.3214. After that, the pair edged higher step by step for the rest of the session and had broken the resistance level 1.3287. Now, it’s trading at 1.3310, the highest level since December 12.

In hourly chart, ADX shows the strength started to increase in the last two hours of the session though the reading is still under 25, the bearish tone of MACD was reversed at the end of the session, stochastic keeps bullish tone while has entered into overbought area. Bollinger Bands confirms that the volatility is low during the session but has started to increase since the end of the session. 

R: 1.3355, 1.3400, 1.3452

S: 1.3214, 1.3180

GBP/USD:

The cable edged lower in the early session until it found support at 1.5792, where it rebounded and contined to rise for the rest of the session. The pair has broken the resistance level 1.5840 and is now fluctuating around the level. Immediate resistance may be found at 1.5860 and above there 1.5885.

ADX shows the strength of the trend had decreased since the rebound of the pair but is now starting to recovering, MACD takes neutral tone, both stochastic and RSI takes bullish tone while the former has entered into overbought area.

R: 1.5860, 1.5885, 1.5902

S: 1.5790, 1.5770, 1.5745

USD/JPY:

The pair has increased since the beginning of the session. The gains acquired in the session is about 20 pips. The pair had broken the resistance level 77.17 and immediate resistance may lie at 77.31. 

ADX shows the strength has increased since the beginning of the session and the reading is now above 50, MACD keeps bullish tone but stochastic has given the opposite signal. Bollinger Bands shows the volatility is growing slowly. 

R: 77.31, 77.48

S: 77.00, 76.70