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Kuroda Sparked a Yen Sell-Off

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Asian stocks finished the session higher with Nikkei 225 index gaining 0.60 percent at 21,431, Hong Kong’s Hang Seng index jumping 0.86 percent to 27,472, while the Shanghai Composite added 0.2 percent to 2,761. Early gains in Aussie stocks couldn’t be sustained on Wednesday with the market held back by weakness in retail, banking, telco, IT and utility stocks. The ASX 200 ended down 10 points or 0.2% to 6,096. Crude oil rose 22 cents to $56.67/barrel while Brent added 7 cents to $66.52 per barrel. Gold trading at 10-month highs of $1,342 extending its rally sparked in part by signs that the world’s central banks are turning dovish.

European equities started the session higher with trader’s eyes on more Brexit talks between Prime Minister Theresa May and European Commission President Jean-Claude Juncker. DAX added 0.52 percent to 11,367, and CAC40 in Paris rose 0.15 percent to 5,168 while FTSE100 in London trades moved 0.32 percent higher at 7,201.

On the Lookout: The National Association of Homebuilders’ monthly confidence index rose four points to a seasonally-adjusted figure of 62 in February, asking the second improvement in a row for the index. Last month, the index – which tracks views of current sales conditions – gained three points to a reading of 67. Despite the strong reading, the NAHB cautioned that affordability remains a critical issue. The industry body pointed out that builders felt regulations were still “excessive” and that the Trump administration’s tariffs had made raw materials much more expensive.

Today, we have an all-important release of the Minutes of the Federal Open Market Committee (FOMC) January meeting, which is due at 19: 00GMT.

Trading Perspective: EURUSD keeps the positive momentum from yesterday trading above 1.1350 area turning to bullish sentiment for the short term as the pair broke above all the major hourly moving averages. The pair will face strong resistance at the 1.1385 region where the daily averages are crossing. A break above that level can drive prices up to yearly highs. On the downside, immediate resistance will be met at 1.1320 the 50-hour moving average.

EURUSD Hourly (H1) Chart

Open interest in EUR futures markets rose by more than 1.1K contracts on Tuesday from Friday’s final 541,573 contracts, recording the second advance in a row. In the same line, volume rose significantly by around 96.8K contracts.

GBPUSD: The optimism from Sterling investors is impressive given that the EU has continued to say that they will not accept a time limit on the Irish backstop arrangement and refuse to make any changes to the already agreed deal. The pair broke the 200-day moving average yesterday attracting the bulls and now may challenge the 1.31 level.

Open interest in GBP futures markets increased by around 6.6K contracts on Tuesday vs. Friday’s final 196,489 contracts, according to advanced figures from CME Group. Volume followed suit and clinched the second build in a row, this time by around 83.1K contracts.

USDJPY: The Bank of Japan (BoJ) governor Kuroda sparked a sharp Yen sell-off across the board after he said that the BoJ is ready to ease further if there is any difficulty in achieving the 2% price target. The pair is trading around 110.80 in early European session with the bulls targeting the weekly high at 111.13. Support for the pair can be met at the 50-hour moving average around 110.64.

In JPY futures markets investors scaled back their open interest positions by just 347 contracts on Tuesday from Friday’s final 185,212 contracts, clinching the second straight drop. Volume, instead, rose by nearly 13.2K contracts, prolonging the choppy performance as of late.

boj

USDJPY Hourly (H1) Chart

Asian Stocks Mixed, EURUSD Flat around 1.13

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Asian indices finished in mixed tones with investors awaiting further trade talks in Washington later this week between the US and China. The Chinese government accused the US of trying to block its industrial tech development overnight, and that stirred a few sour tones in Asian trading today.

Chinese equities are lower after posting robust gains yesterday. The Shanghai Composite is down 0.05 percent at 2,750 while in Hong Kong, the Hang Seng index is down by 0.42 percent at 28,228. In Japan, the Nikkei225 was 0.10 percent higher at 21,302, and the Australian stocks have finished firmer for a third straight day, helped by strong gains in the financial sector. The ASX 200 index closed up 0.3% or 17 points to 6106.9.

Crude oil added 28 cents to $56.26/barrel while Brent oil lost 14 cents to $66.36/barrel. The US Dollar index started with 0.09 percent gains at 96.87 while USD is adding 0.12 percent against Yen AT 110.74. The Swedish Krona climbed to 2019 tops above 10.56.

European stocks have started the session on a negative note, with investors playing it safe ahead of another week of US-China trade talks and a slate of economic data due out later in the session.

On the Lookout: European Monetary Union Current Account came in at €32.99B, below analyst’s expectations (€36.2B) in December and the Italian Industrial Orders n.s.a (YoY) came in at -5.3% below forecasts (2.3%) in December just to add to investors worries. The ZEW will release its German Economic Sentiment Index and the Current Situation Index at 10:00 GMT in the EU session later today, reflecting institutional investors’ opinions for the upcoming six months, also at 10:00 GMT, Eurozone December construction output data will be released.

According to the latest Reuters poll of economists, a majority of them believe that the Reserve Bank of Australia (RBA) will keep the Official Cash Rate (OCR) on hold until at least early 2021.

US stocks will resume trade following the President’s Day holiday. The NAHB housing market index is also due for release.

Trading Perspective: ECB’s chief economist Peter Praet earlier in the session said that the ECB could adopt rate guidance if the European economy were to slow sharply. “Biggest problem by far is political uncertainties persisting for so long, related to protectionism, Brexit.” EURUSD is trading slightly lower today just above the 1.13 level. The pair’s immediate hurdle is at yesterday high at 1.1340 while more supply will be met at 1.1390 the 100 day MA. On the downside, first support will be found at 1.1234 the low from February 15th and then key support is at the yearly low around 1.1215.

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EURUSD Hourly (H1) Chart

GBPUSD: The pair currently is trading flat at 1.2922 having posted a session-low level of 1.2892, during the Asia session, but managed to regain positive traction for the second straight session above 1.29. Sterling was supported by the UK Cabinet Office Minister David Lidington’s comments, saying that the UK government might be able to re-negotiate the deal or delay the Brexit term scheduled for March 29. Immediate support for the pair stands at the 100-day moving average at 1.2880 while a break below can force prices down to 1.2828 at the 50-day moving average. On the flipside, strong resistance will be met at the 200-day moving average at 1.3015

GBPUSD Daily Chart

BNP Paribas Asset Management Adds Christopher Dunn as Global Head of Client Satisfaction

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BNP Paribas has strengthened its client satisfaction to keep its edge in this highly competitive financial services industry

bnp paribasBNP Paribas Asset Management, the asset management arm of BNP Paribas has added Christopher Dunn to its newly formed client experienced team. He has been appointed in the position of Global Head of Client Satisfaction within the company, and according to the information made public, the appointment had been made back in January.

For the job, Dunn will be relocating to Paris, in the bank’s headquarters from his current New York location. In his newly created role, Dunn will be wholly responsible for all the actions that will be undertaken to improve client satisfaction through departmental and regional co-operation. At the time, when competition is growing with each passing day, the importance of client satisfaction has taken the centre stage in planning and execution for many multinationals and big organizations.

Dunn will be reporting to Global Head of Client Experience, Melanie Aimer and will be responsible for creating and implementing client-focused activities globally. Commenting on Dunn’s appointment, Melanie Aimer said:

 “Client satisfaction is a critical component of business success and a key focus for BNP Paribas Asset Management. Christopher’s experience of using market insights to advise leading asset managers on business strategy and client-focused initiatives will enable us to deepen our understanding of the issues facing our clients in order to enhance the service that we offer them. I am very pleased to welcome Christopher to BNP Paribas Asset Management.”

Dunn is joining the asset management division of BNP Paribas from Greenwich Associates, a financial services company where he was the Vice President. He has initially joined the firm in 2014 as an Associate Consultant. Prior to this, Dunn had worked with Fidelity International and at the UK Trade & Investment, the UK Government’s international business development arm.

At initial stages of his career in 2006, he was Congressional Intern in the US House of Representatives for Congressman Michael McCaul’s regional office.

GBST Delivers Back-Office Custody Solution to Hong Kong Bank

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gbstCMB Wing Lung Bank has deployed Australia-based financial technology provider GBST’s back-office custody solution to support the growth of its custody banking business which safeguards the financial assets of many of Asia’s largest investors.

GBST’s Syn~Ops Custody product – a workflow-driven and cloud-capable solution that allows prime brokers and custodians to focus on the customer and reduce the cost of operations through automation will help CMB Wing Lung Bank to efficiently and securely clear, settle and account for their global custody activity in a single system. CMB Wing Lung Bank, a leading bank in Hong Kong, is a subsidiary of China Merchants Bank and one of many major players in Asia which have partnered with GBST, including Haitong International, Deutsche Bank, and Raymond James. With two offices in Asia, located in Hong Kong and Singapore, GBST has invested resources into growing capital markets client base in the region.

Denis Orrock, Head of Asia Pacific at GBST, commented on the partnership:

“I’m delighted that CMB Wing Lung Bank is now live on our custody solution after a smooth project which delivered on time and to budget. We look forward to working with them to migrate their clients onto the platform and help them deliver efficiencies and service improvements to grow their business. Our partnership with CMB Wing Lung Bank demonstrates our continued customer growth within the important local market segment, leveraging the capability we have developed for international investment banks and brokers in the region. We anticipate further growth as the local market segment continues to develop their international markets capabilities and requirements.“

Syn~Ops Custody is part of the Syn~ suite of products offered by GBST. The suite includes post-trade solutions across middle and back-office, lowering operational costs and improving sell-side customer service.

In June 2018, GBST launched a digital platform targeted at new and existing wealth management and pensions clients as part of its wider technology upgrade programme. Dubbed Catalyst, the platform enables the creation of modern digital products and solutions that seamlessly integrate with existing robust GBST systems.

Deutsche Börse Group Fourth Quarter Net Profit Drops 35%, Presents Subdued Outlook for 2019

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Deutsche Boers FeaturedGerman exchange operator, Deutsche Börse AG has released its preliminary Q4, FY 18 and full year 2018 financial report. The exchange operator during the quarter has posted worse than expected fall in net profits and has also presented a grim outlook for 2019 due to a slowdown in the global economy.

The net profits during the fourth quarter came in at €140 million (£123 million), which is 35 per cent lower compared to €213.6 million the previous year. The operator blamed the decrease in net profits on rising operating costs, mainly due to efficiency measures and litigation.

The company has softened its 2019 outlook mainly due to political uncertainty and growth in economic risks. It maintained a revenue slowdown to 5 per cent and net profit growth forecast to 10 per cent this year but could deviate depending on equity market volatility.

Although, Deutsche Börse AG maintained that the medium-term growth target of 10 to 15 to 2020 is well on track. 

Chief executive Theodor Weimer said on the growth forecast and uncertainty ahead:

“Deutsche Börse Group is looking back on a really good year”, pointing towards a 13 per cent rise in full-year revenue year-on-year and a 17 per cent increase in profits to €1.7bn.

“Given the economic environment, we are taking a slightly more subdued stand on our expectations for the current business year. Cyclical risks are increasing, and political risks are difficult to predict.”

The company has added that it plans to raise the payouts per share to €2.70 in 2018, up from €2.45 in the previous year.

Traders Focus on Trade Talks between the US and China

by Leave a Comment Filed Under: Market News - European Open Tagged: , , , , , , , ,

Trade talks between the US and China are also in focus as high-level talks between the two were due to conclude in Beijing later. Traders were also eyeing any developments in the US as President Trump was set to sign a compromise spending deal to avert another government shutdown, but also declare a national emergency in an effort to secure funds to build a Mexico border wall. Asian shares finished lower with Nikkei in Tokyo down 1.13 percent at 20,900, and the Hang Seng in Hong Kong lost 1.87 percent at 27900 and Shanghai composite shed 1.37 percent. Australian shares bounced off intraday lows to finish a touch firmer on Friday, with the ASX 200 adding just 0.1 percent at 6,066 following gains across all sectors. 

On the Lookout: Financial Times has reported overnight that the US and China were scrambling to reach at least a “memorandum of understanding” by the end of today’s meeting so as to pave the way for a meeting between President Trump and his Chinese counterpart Xi Jinping. Spanish PM Sanchez calls for general elections on April 28th in a surprise move adding another headache for Eurozone. The Ifo Institute came out with a report stating that new US import duties on cars could reduce German car exports to the USA by 50% in the long term.

In the US session economic calendar, we have the Canadian foreign securities purchases data will be reported at 13:30 GMT, the main risk events remain the US industrial production data that will be released at 14:15 GMT, followed by the University of Michigan (UoM) consumer sentiment gauge at 15:00 GMT. Later in the day the focus will be on the weekly US rigs count data due to be published by Baker Hughes at 18:00 GMT.

Speeches from the global central bankers are scheduled for today, at 13:00 GMT we have the ECB Governing Council member Coeure, and at 14:55 GMT, FOMC member Bostic will also deliver a speech.

Trading Perspective: The US Dollar index is trading flat for the day at 97.05 as a Reuters poll sees Fed raising rates once in 2019. The Aussie dollar is trading steady around 0.71 while USDCAD records losses in early European session down to 1.3283. In commodities markets, crude oil gained 6 cents to $54.47/barrel while it’s cousin Brent crude in London rose 30 cents to $64.85/barrel.  Gold added 7 dollars to trade at $1315 amid global growth worries.

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EURUSD Hourly (H1) Chart

EURUSD is trading in a trading range that established this week from the yearly low at 1.1248 to 1.13. A move above the 1.13 level can give bulls a boost to 1.1330 the 100-hour moving average. On the downside the February low at 1.1248 will provide the first support, a break below will result in a test of 2018 lows in the 1.1215 area which remains on the cards.

Other than weak economic figures the political concerns remain well and sound in Eurozone as we get closer to the EU parliamentary elections, the snap elections which called today in Spain, the unresolved issue of the ‘yellow vests’ in France, the Italian standoff also the heavy battered Greek economy will face elections later this year with a struggling banking sector looking for extra capital to control the NPL’s.

Open interest in EUR futures markets dropped for the third session in a row on Thursday, this time by more than 3K contracts vs. Wednesday’s final 537,982 contracts, according to advanced figures from CME Group. Volume, instead, rose by around 27.6K contracts.

You can find below the EURUSD FX option expiries for Feb 15 NY cut at 10:00 Eastern Time.

  • 1.1200 1.0bn
  • 1.1250 748m
  • 1.1275 709m
  • 1.1365 1.1bn
  • 1.1390 710m

GBPUSD: The pair found bids after the United Kingdom Retail Sales (MoM) came in at 1%, above analyst’s expectations (0.2%) in January and managed to cross above 1.28. The pair will face resistance at the 100-day moving average around 1.2880 followed by 1.2950 the yearly high. On the flipside the low from yesterday at 1.2770 will support the pair while a breach of that level will pave the way for a visit down to 1.260 the January lows.

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GBPUSD Daily Chart

Australian Securities Exchange Releases its Preliminary Financial Results for H1FY2019, Reporting Strong Growth During the Period

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australianAustralian Securities Exchange (ASX) on Wednesday announced its preliminary financial results for the first half of fiscal 2019 on a group level. The primary security exchange of the country has witnessed some strong growth during the period, with a large uptick in market activity across all of its businesses. 

In the first half of fiscal 2019, ending in December 2018, the exchange achieved revenue of AU$424.7 million ($302.3 million), which is AU$26 million or 3.8 per cent higher on a year-on-year basis. On a like-for-like accounting basis, it is up by 6.5 per cent when compared to the first half of fiscal 2018. 

The solid performance was recorded across all the business segments with strong volumes in derivatives and over-the-count (OTC) markets, Astraclear and collateral management activity. 

Revenue for the derivative and OTC markets increased by 6.3 per cent, and futures volume increased by 5.3 per cent on a year-on-year basis. This resulted in an increase in total revenue from trading services on the exchange by 8.6 per cent on a year-on-year basis. The cash market trading revenue was higher by 15.2 per cent on a year-on-year basis.

Commenting on the results, Dominic Stevens, ASX Managing Director and CEO, said:

“The result reflects the balanced approach we take to investing in the integrity of our core businesses and pursuing growth initiatives. It has allowed ASX to deliver another attractive return to shareholders, with our interim dividend rising 6.7% to 114.4 cents per share.”

“The key performance drivers of our businesses were a 38% increase in capital raised to $62 billion, underpinned by the demerger and listing of Coles; a greater than 5% rise in the number of futures contracts traded, particularly in SPI equity futures; an increase of more than 15% in cash market trading amid market volatility; and the continued expansion in the number and variety of financial market participants in ASX’s Australian Liquidity Centre (ALC), spurring demand for our technical and information services.”

Further, ASX is also eyeing growth from new data analytics platform that offers its clients access to data science and machine learning capabilities to solve complex problems. The platform has been made live and initially will only be applied for internal use cases before being made available to selected customers.

Stevens further added: 

“The investment here will enable ASX to create analytics solutions for its customers. It will support access to data science and machine learning capabilities and offer a broad range of ASX and non-ASX datasets. The initiative will allow those who contribute data and analytics, to create in fact their own new revenue streams.”

Hopes on Trade Truce Extension Drives Markets

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Traders are remaining hopeful of a trade truce extension between the US and China after US President Trump said he would let the deal deadline slide if both parties were making headway. Asian markets finished flat for the day, after posting decent gains over the last days. The Nikkei in Japan ended 0.02 percent lower to 21,139, the Hang Seng in Hong Kong lost 0.23 percent to 28,432, while the Shanghai Composite index was 0.05 percent lower at 2,719. The Aussie ASX200 index was up around 30 points at its best levels in the early part of the session to end the session flat, down 4 points to 6059 points. The Dow Jones Industrial Average finished the day 0.46 percent higher at 25,543.27, the S&P 500 added 0.3 percent to 2,753.03, and the Nasdaq 100 finished 0.02 percent higher at 7,015.88.

European equities started higher, DAX is adding 0.33 percent to 11,204, CAC40 is 0.61 percent higher, and London pushed 0.41 percent higher at 7,220, only MIB in Milan is trading 0.31 percent lower.

On the Lookout: Chinese President Xi Jinping is expected to meet key members of a US delegation in Beijing on Friday. Japan’s fourth quarter annualized GDP rose 1.4 percent.

Tonight, during the US headlines, we will be presented with the producer price data, released with retail sales, weekly jobless claims, and business inventories.

Apart from the data, speeches from the central bankers are scheduled, BOE board member Vlieghe speaks at 09:30 GMT and RBA Kent speaks at 20:30 GMT.

EURUSD Hourly (H1) Chart

Trading Perspective: EURUSD managed an impressive rebound in US session from yearly low, but sellers came back in the Asian session sending the pair back to 1.1250. The technical picture has deteriorated for euro and a break below the low from yesterday can drive prices down to 1.12 area. On the upside, only a break above 1.1344 can give bulls the upper hand. The macro news from Europe still disappoints, today it was the German Q4 GDP numbers which arrived at 0.0% q/q worst than analyst’s expectation of 0.1%.

EUR futures markets, open interest rose by just 490 contracts on Wednesday from Tuesday’s final 538,627 contracts. On the flip side, volume reverted two consecutive builds and dropped by around 18.5K contracts.

GBPUSD failed to hold above 1.29 and sellers took control sending the pair down to the monthly low around 1.2830 area targeting the key support at 1.28 while on the upside any meaningful up-move now seems to confront a strong resistance near the 1.2900 handle.

Open interest in GBP futures markets dropped by just 854 contracts on Wednesday vs. Tuesday’s final 194,998 contracts, as per the latest advanced figures from CME Group. Volume, instead, increased by around 36.2K contracts, extending the erratic activity so far this week.

markets

GBPUSD Hourly (H1) Chart

USDJPY keeps trading in a positive tone above and below 111 level. Bulls are waiting for a break above 111.26 to enter new long positions.

In JPY futures, markets investors added around 1.9K contracts to their open interest positions on Wednesday from Tuesday’s final 185,725 contracts. Volume, instead, shrunk for the second session in a row, this time by almost 5.9K contracts.

Japanese Retail Broker Kabu Reports Lowest Monthly Revenue in January 2019 in the Last Three Years

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kabuMitsubishi UFJ Financial Group subsidiary, Kabu released its preliminary financial results for January 2019, reporting lowest monthly revenue in the last three years. 

In terms of commission fees, the broker managed to rake in 461 million Yen ($4.61 million) in January 2019, the lowest monthly revenue generated since 2016. For the five-month period till January, the firm averaged 619.6 million yen ($5.61 million) in brokerage fee-based revenue.

The brokerage revenue from different instruments that Kabu offers to traders witnessed a fairly evenly decline. The revenue derived from equities trading dropped to 209 million yen ($1.89 million), which is nearly 33 per cent lower 301.6 million yen ($2.73 million) in the equities trading-based revenue that the firm averaged in last five months. The market-making segment, the firm’s largest contributor to the revenue also experienced a drastic slump in January 2019.

The market-making activities reported at 595 million yen ($5.38 million) in January, a fall of 242 million yen ($2.19 million) from December 2019. The net operating revenue totalled 1.23 billion yen ($9.26 million), which is $4 million lower from the December 2018 figures. 

E*TRADE’s DARTs Came in Lower in January 2019, both Monthly and Yearly Wise

E*TRADE Financial Corporation released its daily average revenue trades (DARTs) for the month of January 2019, pointing lower figures than December 2018 figures. In the month, the DARTs came in at 282,499 contracts per day, a decrease of 9 per cent month-over-month from 310,889 ‎in December 2018. On the yearly time frame, the figure is 10 per cent lower year-over-year, which came in at 315,572 in January 2018.

In terms of new accounts growth, the group added 90,174 gross new brokerage accounts on January 2019, compared to 74,598 accounts in December 2018. The latest figures also include data from the recent acquisition of brokerage accounts from Capital One. This brings the company’s overall accounts approximately to 7 million accounts in January 2019, compared to 6.95 million accounts in December 2018. 

The broker’s customer asset rose to $453 million in January 2019, which is 12 per cent higher year-over-year from $410 million in January 2018. On a monthly basis, the January figures are 9 per cent higher from $436 million in December.

Asian Stocks Higher amid Positive Reports Regarding the Trade Talks

by Leave a Comment Filed Under: Market News - European Open Tagged: , , , , , , , , , ,

Optimism emerges in US-China trade talks and traders throw bids in Asian markets with Tokyo’s main index adding 1.31 percent to 21,144 making to eight weeks high, the Hang Seng in Hong Kong rose 1.16 percent to 28,497 and Shanghai Composite index advanced 1.84 percent to 2,721. The Aussie ASX 200 index shed 0.3 percent to 6,063. US Dollar index trading flat at 96.73. The crude oil rose 50 cents to $53.60/barrel, and Brent oil gained 53 cents to $62.95/barrel. Gold is adding two dollars to $1312.65.

European stocks follow Asia higher with DAX rising 0.51 percent 11,181, CAC40 also trading 0.38 percent higher at 5,076 and in London the FTSE100 pushed 0.46 percent higher at 7,165.

On the Lookout: Riksbank will make its interest rate decision today and is widely expected to stay on hold with unchanged future guidance. Bank of Japan (BoJ) Governor Haruhiko Kuroda reiterated that inflation is slowly moving towards 2% price target.

In Australia, Consumer confidence rose by 4.3 percent in February, its biggest lift in 33 months to 103.8 (a read above 100.0 indicates optimists outnumber pessimists). Despite the lift in sentiment, confidence hit a 16-month low in January.

The International Energy Agency (IEA), in its monthly oil market report, maintained 2019 global oil demand growth forecast of 1.4 million bpd vs. 1.3 million bpd in 2018 saying that the political crisis in Venezuela risks disrupting the global crude market.

In the US trading session, the US January inflation report will headline, with the focus on the core figures amid weaker energy prices. The headline CPI figure is likely to ease to 1.5% y/y vs. 1.9% previous while the core rates are seen lower at 2.1% vs. 2.2% last.

Trading Perspective: In forex markets, Kiwi was the big mover after the Reserve Bank of New Zealand (RBNZ) monetary policy statement, and Governor Orr’s comments sent the NZDUSD more than 100 pips higher to highest levels in six days at 0.6838. The Aussie dollar also rallied to weekly tops near 0.7125. GBPUSD is trading lower today and broke below the 1.29 level. The pair will test the support at 1.2875 at the 50-hour moving average.

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EURUSD Daily Chart

EURUSD made an impressive comeback yesterday jumping 0.43 percent, above 1.13 after in US session hit YTD low at 1.1257. Immediate resistance can be found at the 50-day moving average at 1.1391 while more supply will emerge at the 1.1420 region.

Scotiabank currency analysts think that the short-term technical for EURUSD is on the bearish side and traders should trade the currency pair with caution for the time being. They believe that “Momentum indicators are bearish and the DMI’s are confirming. The Euro appears to have broken the ascending channel from November, and near-term support appears limited ahead of the November low around 1.1220. We are somewhat cautious, however, given that EUR continues to trade within the range and given that it has shown a remarkable ability to rally from the mid/upper-1.12s in several instances over the past few months.”

USDJPY is trading close to yearly highs advancing 0.18 percent to 110.68 with bullish bias still intact and with traders eyeing the 111 barrier. Traders continue to dump Japanese Yen on risk on mood after positive news from the trade talks frontier. The round figure at 111 is the immediate resistance, while a break above can lead price to 200-day moving average at 111.30. On the downside, support can be met at the low from yesterday at 110.34 while more solid support can be found at the weekly low around 109.43 area.

USDJPY Daily Chart

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