Daily FX Comment EUR/USD & USD/JPY 27th January 2012
Albeit reaching higher initially to $1.3184, the euro closed near flat yesterday as investors decided to take some profits and leave the attack on resistance at $1.32 for another day. It seems the latest rally in the single currency started because traders reversed anti-euro bets with a bonus when the Fed extended plans to keep the US interest rates at the current low levels for at least a year longer. It remains to be seen if the news from the other side of the Atlantic will be a real game changer or the ongoing uncertainty in the euro zone will again send the common currency lower.
Moving Averages: 9 day 1.2984 14 day 1.2892 40 day 1.3002
USD/JPY Overview
The effects of the Federal Reserve’s pledge to hold near zero interest rates at record low levels for longer than originally anticipated continued to push the US dollar down. As a result the USD/JPY pair started to tumble losing 33 pips to 77.430 even as Prime Minister Yoshihiko Noda urged the Bank of Japan to take action against currency’s appreciation which hurts his country’s exporters. And early this morning the trend seems to follow its downside course as investors rush into refuge currencies such as the Japanese yen.
Moving Averages: 9 day 77.16 14 day 77.04 40 day 77.40
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_special.gif)
