The Yen retraced back some of the earlier strength seeen since the end of last week, but has remained within sight of its recent highs against the USD. USDJPY, currently at 111.92 made it too lows 111.59 earlier in today’s session, these lows were last seen in November last year.
The Japanese Yen’s safe haven appeal is attracting support at a stage were geo political concerns remain a daily truth. In France, far right National Leader Marine Le Pen launched her presidential campaign – one of the highlights of her promises is to take France out of the EZ after a referendum. Apart from France we also have German elections this year so expect doubts to overshadow the EZ area.
EZ Sentix investor confidence yesterday came in lower than the previous month, but the reduction was not as bad as had been expected. Investor confidence dropped from 18.2 to 17.4. German Factory Orders for December were much stronger than anticipated coming out at 5.2% and 8.1% respectively for the M/M and Y/Y figure.
Earlier this morning the RBA left rates unchanged at 1.5% as was expected. Later on today we have German industrial Production but apart from that the economic docket is relatively quiet.
Yen was not the only safe haven attracting support, Gold has seen a steady rise after touching lows of $1180.42 on the 27th January it is currently at $1234.13. For today’s daily scenario TraderTip is expecting current uptrend to find resistance around $1242.73, after which Gold’s price may experience a setback towards $1224. A rise above $1246 would likely abort the expected setback.