Asian markets retreat after two-weeks rally; Dollar and Yen, stronger

Asian markets have declined on Wednesday on investors' concern about a market bubble after two weeks of advance, one of the largest rallies since the late eighties. Euro and Pound have given away gains from previous days, and the Yen strengthened across the board.

Japanese Nikkei Index edges down 0.1%, while Hong Kong's Hang Seng Index drops 1.8%, and South Korean Kospi Index declines 0.5%.

Investors have turned more cautious on growing concerns that stock markets, after two weeks of continuous rallies, were losing touch with the real economy and the current circumstances of industrial activity. Furthermore, the spread of IPO fever has weighed Chinese and Hong Kong markets.

Euro and Pound tumble, Yen stronger

EUR/USD returned to test resistance area at 1.4300, ut, after hitting a 8-week high at 1.4304, the Euro dropped sharply during U.S and Asian sessions to test support level at 1.4130 which has not given way, and the Euro trades, at the moment, around 1.4160.

GBP/USD launched an assault to 1.6555 high on Tuesday but rejection from that resistance level triggered a decline to levels right above 1.6390 support, which is being tested at the time of writing.

USD/JPY declined yesterday from levels rigt above 95.00 to break support at 94.60 and drop all the way to levels right above 94.00. The Dollar attempted ashy recovery on early Asian session but 94.60 resistance capped it to send the pair to 94.20 at the moment of writing.