Sharp fall seen in Dollar Yen and EURJPY after the BOJ policy meeting yesterday. Both currency pairs look weak and have scope to fall towards 130-128 and 137 respectively. Euro needs to sustain above 1.06 to move higher while Dollar Index can have scope to fall towards 103-102 on a break below 104 else can range within 104-105 for some time. Aussie and Pound are bullish while above supports at 0.6650 and 1.20 respectively. A break on the downside if seen will signal bearishness for the medium term. USDRUB has moved up sharply over the last 1-week and if sustains above 70, can indicate further bullishness. USDCNY and USDINR can be ranged within 6.94-7.00 and 82.40-82.85 respectively with some scope of testing 83.00 on the upside. EURINR can range below 88 for a while before again rising higher.
The US Treasury yields have surged further breaking above their near-term resistances. The outlook is bullish, and the yields have room to rise further. The German yields continue to rise and are keeping intact our bullish view. The yields can rise further in the coming days. The 10Yr and 5Yr GoI have come-off from their day’s high yesterday. The price action in the coming sessions will need a watch to see if they are bouncing back or not.
Dow need a decisive rise past 33000 to ease the downside pressure. DAX needs a strong break above 14000-14200 resistance zone to negate the danger of falling further. Nikkei has plunged below 26500 after the Bank of Japan (BOJ) surprised announcement of widening its yield target band. Shanghai has bounced back above the support at 3075. Nifty needs to surpass the 18500-18600 resistance zone to negate the danger of falling further.
Brent and WTI are hovering below the key resistance at $81.50 (Brent) and $77.5 (WTI) respectively. Gold has risen sharply towards the upper end of its sideways range. A strong break above 1840 could pave the way for further rise in the coming sessions. Silver has risen back sharply as the immediate support at 23 held strong. Copper has scope to rise towards the upper end of the 3.70-3.93 range.
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