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Session Recap: Kuroda, Commodity pairs and 'lie to me'

FXStreet (San Francisco) - Every time central banks' meetings take places in the market-phere, Live Analysis Room's anchor Dale Pinkert plays the Jonny Lang's song 'lie to me' and the whole FXroom repeats: "Lie to me and tell me everything is all right."

Today's session was nuanced by Kuroda's words on QE. He said "no more QE now, but ready if needed." Then USD/JPY's rally took a pause as the pair retraced from 107.20 to 106.60. However the trend is your friend, remember, and the pair is now back above 107.00. The scoop is that the pair will reach further highs in the upcoming weeks.

Valeria Bednarik from FXStreet commented that the USD/JPY is providing a buy opportunity as viable targets came at 108,50 and even 110.00 are possible. For now, the USD/JPY is closing its fourth positive day in a row as the pair is holding above the 107.00.

"Nevertheless, bulls remain in control, and there is no technical suggestion of a sooner reversal or at least a more interesting downward correction," comments Bednarik.

On the other hand, Adam Button commented that the theme today was the weakness in commodity currencies. After NZD free fall in the last month, now the CAD and the AUD are joining it. "AUD/USD jumped on the employment data then it got absolutely smashed more than 100 pips lower and below 0.9100. We finish the day near the lowest since March and bounced were limited to 20-30 pips," affirms Button.

The USD/CAD recovered all of previous day declines and even it posted fresh highs since April 1 at 1.1060. Pair closed at 1.1030. The traded in consolidation mode aroud 0.8180 where it remains now.

Main headlines in the American session

Canada New Housing Price Index (YoY) remains unchanged at 1.5% in July

BoJ's Kuroda: Adjustments to monetary policy not necessary for now

Wall Street closes around highs but mixed on the day
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=7907aafa-cc1d-49b3-9e03-441f40c8c881

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