Asian Session Forex Recap – Oct. 17, 2014

  • BOJ bond-buying falls short of target
  • Nikkei posted 1.40% loss for the day
  • Germany’s central bank head set to give a speech

Newsflash! Signs of trouble are brewing in Japan, as the BOJ’s bond-buying operation fell short of target for the first time since April 2013. The central bank was able to buy only 2.62 trillion JPY worth of bonds versus the 3 trillion JPY target, indicating that Governor Kuroda and his men are facing a tough challenge when it comes to boosting liquidity. Japanese stocks reacted negatively to this news, causing the Nikkei to post a 1.40% loss for the day.

USD/JPY is down 0.08% at the 106.20 levels while EUR/JPY is down 0.10% and testing the 136.00 support level. GBP/JPY has marked a 0.09% decline in the past few hours and is hovering around 170.80.

Meanwhile, the New Zealand dollar had an unusual bout of volatility earlier, as the RBNZ September statement was mistakenly republished. Recall that this particular statement contained remarks on the unsustainable and unjustifiable levels of the Kiwi, leading to a quick selloff. NZD/USD was able to regain ground and trim its losses to just 0.08% so far, as forex news headlines confirmed that the statement was reprinted in error.

The forex calendar indicates that we’re in for a data-light London trading session, with no economic reports on tap. If you’re trading the euro though, better keep tabs on the speech by German central bank head Jens Weidmann around 10:00 am GMT. Any indication that the Bundesbank is willing to support further easing measures from the ECB could wake the euro bears up. Stay on your toes!

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!