By TraderVox.com
Tradervox.com (Dublin) – The pair has been trading on its regular trend but lost uptrend support last week. With Bank of Japan’s monetary policy meeting minutes due to be released this week, the cross is expected to remain neutral over the course of the week. The Bank of Japan resolved last week to keep the interest rates between 0.0 percent and 0.1 percent and made a technical move of moving 5 trillion yen from its credit facility fund to its asset purchasing program. There are two major events this week that will affect this pair from Japan. Here is a look at those events as technical analysis for the cross.
The first major event set to affect this pair is the Bank of Japan Monetary Policy meeting minutes that will be released on Tuesday at 2350hrs GMT. Masaaki Shirakawa, the BOJ Governor has showed concern about the worsening debt crisis in Europe and the economic slowdown in China which is Japan’s major export destination. Investors will looking at how the member voted as well as their sentiments.
The other major event that will affect this cross is the All industries Activity report which will be released on Thursday at 0430hrs. In April, the report showed an increase of 0.1 percent. The report also showed a drop in construction sector of 5.6 percent and 0.2 in industrial output. The pace of growth in all industry activity declined from 5.5 percent in the previous to 4.1 percent in April. Economists are expecting a further decline from this report.
Investors and market analysts will be looking for any suggestion that the pair will change from the current range. It is important to note that the uptrend support has been broken which had more significant than the uptrend resistance. Market analysts remain neutral on this cross as the forces pushing these two safe haven currencies remain fairly balance over the week.
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