FXstreet.com (Barcelona) - Asian markets are going through moderate advances on a cautious session on Wednesday, as investors wait for the markets to decide between further rally or the most awaited correction are to follow. Euro and Pound pull down after recent rallies.

Tokyo Nikkei Index and Hong Kong's Hang Seng Index have remained little changed, while South Korean Kospi Index and Australian S&P Index advanced 0.8%. Markets in India and Taiwan are also positive.

Investors remain cautious, awaiting for direction in a context of ambiguous economic data and markets moving within narrow ranges as the rally seen during the last five months seems to have lost strength.

Euro and Pound pulling down after recent rallies

GBP/USD has rallied from 1.6405 low on Tuesday's U.S. session opening, to test 1.6600 resistance area during Asian session which failed do give way, and the pair declined to levels right above 1.6500 at the time of writing.

EUR/USD has remained on the upside, after bouncing at 1.4070 on early U.S. session. The common currency has reached a session high at 1.4175 on Asian trade to decline to levels around 1.4105 ahead of the European session opening.

USD/JPY has been going up and down within a narrow range, and from 94.60, the pair has risen to 94.95, to drop afterwards reaching levels around 94.30 at the time of writing.

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