FX.co ★ Fundamental Analysis, for September 19, 2012

Unexpectedly, the Bank of Japan announced a new plan to stimulate the local economy through a massive injection of money into the markets. The yen fell on all fronts during the Asian session on Wednesday, reaching 79.20 against the dollar which technically met stiff resistance in downtrend line noticeable in daily charts.
Meanwhile, the euro and the pound are still losing strength against the dollar, as the result, last week euphoria is slowly diluted. As can be seen, news from Europe can give a partial solution to the debt problems in the medium and long term to countries like Spain and Italy, but they do not cover the issue about lack of growth, thus, the market mood is changing.
So, European stock markets again operate in low range, except Madrid IBEX 35, which added a modest 0.35%.
The euro broke momentarily 1.30 support, recovering slightly at the moment. The break of a trend line at 1.3040 was decisive for the downward acceleration of the price. Something similar happens with the pound sterling.
The Australian dollar, meanwhile, seems to have stopped for the moment after its sharp decline in recent days, but was unable to recover slightly to 1.0480. The break of 1.0410 could trigger a bearish impetus to the Aussie dollar.
The coins were not linked to oil, at least for now which was the impact of the sharp drop in oil. After getting over $100 per barrel on Friday, WTI is quoting below $95 now with a downward movement which accelerated since the beginning of the European session on Wednesday.
Meanwhile, an ounce of gold continues its upward trend. It seems to be a fairly safe asset during these days: when there is a crisis, gold is considered to be a sought shelter. In any case, the level of $2,000 per ounce seems to be just a matter of time.
The calendar date news includes building permits and housing starts in the United States with a very positive outlook in the second one: it is expected that housing starts data is the best in recent years, which demonstrates a good recovery of this key sector of the U.S. economy.
Also we are awaiting the statistics on existing home sales at 10:00 ET and oil inventories at 10:30.