Good morning from Hamburg and welcome to our Daily FX Report.

The JPYstrengthened against most of its 16 major currency counterparts before a German report may show, business confidence in Europe's largest economy may has fallen the fifth month in a row, increasing demand for the Asian currency as a safe haven.

Anyways, we wish you a nice and successful trading day.

Market Review – Fundamental Perspective

Yesterday, the German government did not succeed to get bids for 35 percent of the offered 10- year bonds. According to Bundesbank data, out of a maximum target for the sale of 6 billion euros in securities due in January 2022, only 3.889 were sold. In consequence the borrowing costs rose while the EURyesterday dropped to a six-week low versus the USDon concern that Europe's lasting debt crisis is deterring investors. Yields on Germany's 10-year debt increased 22.9 basis points, the strongest rise since 1990. The Ifo institute's business climate index for Germany to be released today, is expected to show a fall to 105.2 this month, which represents the lowest figure since March 2010. According to European Central bank Governing Council member Ewald Nowotny, Germany's difficulty in getting bids for its debt are an "alarm".

The JPYtouched a six-week high against the EUR, as Italy will try to sell bills tomorrow after Germany have failed to get bids for the whole amount of bonds offered. Italy is preparing to sell 8 billion euros of bills tomorrow. The Japanese currency also advanced versus the USD as Asian stocks rebounded and speculation increased, that yesterday's jump of 1.2 percent of the USD was excessive.

The USDalso rose against the EURas a gauge of European services and manufacturing shrank. In addition, data for China is signaling a slip in manufacturing. US financial markets are closed today for Thanksgiving Day.

The JPYwas at EUR103.13, after having touched 102.93 earlier, the highest level since the 10th of October. The JPYrose 0.3 percent also against the USDto 77.07. The USD weakened 0.3 percent to EUR1.3382 after having reached 1.3320 yesterday, the highest level since the 6th of October.

Daily Technical Analysis - Our Focus Currencies for Today

EUR/JPY (H 4)

As we can see, since the 4th of November, the EUR has been depreciating against the JPY inside a Fibonacci fan. At the former support level around 103.44 the fall was temporarily stopped, but as the rate has dropped below this level, the fall is about to continue. As the DeMarker has not provided a bullish signal yet, we might see further losses.

Intraday Support & Resistance (H 4)

AUD/USD (H 4)

The AUD/USD currency pair has shown a steady decline after having broken through the support level around 1.0060. At the support level around 0.9660, we currently see a slight recovery. The RSI is indicating an oversold market, why we might see some gains to the middle Bollinger band.

Intraday Support & Resistance (H 4)

•  Read the Varengold analysis on majors, crosses and exotic pairs