TRADING TIPS :
- Forex-Dollar continues to trade near 14-month highs vs. rivals.
- Forex-Stronger dollar hits fresh 6-year highs against yen.
- Forex-AUD/USD drops to 6-month lows on Westpac report.
USD/JPY rose to fresh six year highs and was last up 0.56% to 106.78.The yen remained under pressure after data on Monday showing that Japan’s second quarter economic contraction was larger than initially estimated, and another report showing that the country’s current account surplus fell short of expectations in July.The weak data indicated the economy is struggling to gain momentum and fuelled expectations for more stimulus from the Bank of Japan.Meanwhile, expectations that the Federal Reserve is growing closer to raising interest rates have continued to support demand for the greenback.
GBP/USD fell to lows of 1.6053, the weakest since November and was last at 1.6091, 0.08% lower for the day. Cable was likely to find support at the 1.6025 level and resistance at around 1.6160.Sterling fell to session lows amid investor jitters ahead of the results of a new poll due to be released later Wednesday at 10.30 pm BST.The latest opinion poll published on Tuesday showed that support for Scottish pro-independence voters had increased ahead of the September 18 referendum.Uncertainty over what currency an independent Scotland would use, as well as concerns over how much of the U.K. national debt it would take on have sparked a broad based sell off in sterling. A study by the San Francisco Fed published on Monday indicated that central bank officials see rates rising earlier than markets expect.
1. Buy USD/JPY Above 105.90-TG:106.10/106.40 SL 105.60
2. Sell USD/JPY Below 106.75-TG:106.55/106.25 SL 107.05