USD/JPY completed it Head and Shoulders pattern, will it break its neck line?
The Forex market presented an interesting session yesterday, as economic data had its affect on the various currency pairs. The GBP/USD continued to climb higher as industrial production showed a better than expected result, contracting for the month of March by only -0.1%, much less than the expected -0.8%. In addition, Germany showed that their economy could start to be feeling recent ECB monetary actions. Their wholesale price index showed an increase of 0.1%, compared to its previous negative result, while inflation showed that the bank’s efforts aren’t stirring major inflationary problems. The consumer Price index showed a 0.7% figure, as expected.
Earlier during the session, leading economic indicators showed a surprising figure from Japan as the result showed a 2.1 reading. Even though Japan’s economy is far from showing a healthy status the result had a minor affect on investor’s sentiment, helping to drive the Yen higher during the intraday session. The USD/JPY dropped dramatically during the session as a combination of economic data and a mixed session in the U.S, sent carry traders cashing in on recent gains.
From a technical point of view the Dollar/Yen pair is now trading on neckline support. Generally, such a formation indicates towards a change of trend, but due to the recent change in sentiment driving equities higher, the current down trend could be limited.
Commodities
Crude oil continued on its climb higher, finishing its 5th straight session in green. The black gold managed to break psychological resistance of $60 during the intraday session, but gave back its strength to close the session at $59.30 per barrel.
Gold also had an impressive day closing with a 1.12% gain.
Read the full article at Dodjit.com
