At the Asian session, Japanese core machinery orders and monetary policy meeting minutes were released. In February, core machinery orders fell. Total value of machinery orders, received by 280 manufacturers in Japan, decreased by 1.4% on a seasonally adjusted basis in February from the previous month. Private-sector machinery orders, excluding volatile ones for ships and those from electric power companies, decreased by 0.4% on a seasonally adjusted basis in February.

The Bank of Japan Policy Board's Monetary Policy Meeting was held in the head office in Tokyo on Monday, March 16 and 17, 2015. Minutes were just released. Many members said they are ready to continue easing until inflation stables at 2%. Exports were expected to increase moderately, mainly against the background of the recovery in overseas economies. The year-on-year rate of increase in the CPI (all items less fresh food) was in the range of 0.0-0.5 percent. The year-on-year rate of increase in the CPI was likely to be about 0 percent due to the effects of a decline in energy prices.

Technical view:

The cross has been extending its downward journey for 4 consecutive days. In the last week, the cross closed below 200Wema and 20Dsma129.60. The trading pattern of cross is a mirror image to EUR/USD. The cross has parallel minor support at 127.20 and major support at 126.90. In case the price closes below 126.90, bears can challenge 125.00, 122.75, and 122.00 in the near term. We recommended selling with sl 136.68 for a target at 117.00 with intermediate support at 126.90 and 122.50. All time interval charts favor bears. Weekly resistance is seen at 128.40 and 129.50. Until the price closes below 129.50, bears have the upper hand with targets at 126.90, 126.00, 125.50, 125.00, and 124.75. The panic will be triggered below 126.90. Intraday resistance is seen at 128.00 and 128.20. Support is found at 127.20. We recommend fresh intraday selling below 127.15 with targets at 126.90 and 126.00. Safe traders can sell below 126.90.

Trade: Selling below 127.15 buying above 128.40