USD/JPY – 78.01 Original strategy : Buy at 77.70, Target: 79.10, Stop: 77.35 Position: – Target: – Stop:- New Strategy :   Buy at 77.70, Target: 79.10, Stop: 77.35 Position: – Target: – Stop:- Dollar’s retreat after intra-day rally to 79.55 suggests a minor top has been formed there and consolidation with mild downside bias is seen for retracement to 77.65/70, reckon the Kijun-Sen (now at 77.55) would limit downside and bring another rise later. A break of 79.10/20 would suggest the pullback from 79.55 has ended...
The markets are fairly quiet during the London session; however that bellies an incredibly interesting Asia session. The Bank of Japan intervened in the FX market after USDJPY reached a fresh post WW2 low at 75.35. The intervention (rumoured to be in the region of $40bn) had a profound pushing the cross all the way to 79.50 in a matter of minutes, which is the most effective round of BOJ intervention for more than a year. This has left EURUSD playing second fiddle as the markets get to concentrate on something other than the Eurozone debt crisis for once. The...
We start this week with in “risk off” mode, as we have the initial catalyst being the Bank of Japan intervention to begin the week. Because the dollar managed to bounce off it’s very extreme levels against the yen, it has rallied against its other major rivals as well. That is meant an easing in the euro, Australian dollar, and others against the greenback. With the dollar’s inverse correlation to risk appetite dominating trading strategies, trading desks recalibrated positions in order to reflect the greenback gains by selling equities...
GBP/USD – 1.6033 Original strategy :  Sell at 1.6070, Target: 1.5955, Stop: 1.6105 Position: – Target: – Stop:- New strategy : Sell at 1.6070, Target: 1.5955, Stop: 1.6105 Position: – Target: – Stop: - As the British pound has rebounded after intra-day selloff to 1.5965, suggesting consolidation would take place and recovery to the Kijun-Sen (now at 1.6058) cannot be ruled out, however, as top has been formed at 1.6153, the Ichimoku cloud top (now at 1.6078) should limit upside and bring another decline later...
After jumping from 75.56 to as high as 79.52 on Japanese intervention, USD/JPY pares more than one third of the gain as the impact of intervention fades. The Japanese yen also recover broadly against other major currencies. There are talks that the Ministry of Finance spend around JPY 5-75T to buy dollars today, even more than the then record selling of JPY 4.5T intervention back in August. While some hailed the timing of intervention, just after BoJ easing last week, there were criticism that recent volatility in the Japanese yen doesn’t really warrant...
