Market Review – Fundamental Perspective

Federal Reserve Governor Daniel Tarullo will speed up an agenda to regulate banks beyond the restraints in the Dodd Frank Act, including making them fund more of their assets using long term borrowing. This could also pioneering in Europe where the European leaders also advice about more regulation. The help will get banks to use more term borrowing is aimed at creating a class of stakeholders that could step in to shoulder losses in case of a failure and reduce the need for taxpayer funding. Banks typically fund their longer-term assets with short- term debt, making a profit on the interest-rate difference between the two. In a bank failure, stockholders are typically wiped out, and short-term debt can disappear quickly as creditors refuse to renew commercial paper and short term notes.
Another important event is the ECB meeting on the 10th of January and it might keep its main refinancing rate at a record low of 0.75 percent. A majority of ECB policy makers were open to cutting the benchmark rate at the bank’s meeting in December after revising down economic and inflation projections that forecast a 0.3 percent contraction this year. Rates were kept on hold because of the negative signals a cut may send, three officials with knowledge of deliberations said on the 7th of December. 
Meanwhile, the AUD fell 0.3 percent to 91.872 JPY and was little changed at 1.05072 USD. The NZDcurrency dropped 0.4 percent to 73.222 JPY and was up 0.1 percent at 83.762 U.S. cents. JPY rose 0.3 percent to 87.512 per USD and gaining 0.7 percent so far this week. The JPY added 0.3 percent to 114.782 per EUR. The EUR/USD traded at 1.3110.
Daily Technical Analysis - Our Focus Currencies for Today

USD/JPY (4 Hours)

For more than two weeks the USD is steadily increasing versus the JPY inside a bullish channel.
The rate reached the resistance level around 88.307, the highest level since 2010. From this
resistance level the currency pair decreased and moved out of the channel. The MACD shows
us further losses, so we might see a fall to the next support of 86.883.
USDJPY
Intraday Support & Resistance (4 Hours)
Support Levels aroundResistance Levels around
86.88388.307
85.613N/A
83.846N/A

EUR/JPY (4 Hours)

As we can see on the chart, the EUR has been trading above a bullish trend line since its low around 109.110 at the middle of March. Currently the rate traded between its resistance level around 115.853 and its support around 113.448. The Stochastic Oscillator indicates further wins, so more wins seems more than likely.
EURJPY
Intraday Support & Resistance (4 Hours)
Support Levels aroundResistance Levels around
113.448115.853
110.636N/A
N/AN/A