Euro Reverses Course; In Position to Test Major 50% Level at 1.3510
International Trading
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Friday, September 24, 2010
, Posted by Usman Ali Minhas at 7:57 AM
A German business climate survey came in above expectations reversing the Euro and sending it higher. The strong rally in the Euro brought it closer to a major 50% retracement upside target at 1.3510. The overnight move also erased Thursday’s negative tone which was triggered by a bad PMI number.
The USD JPY rallied sharply overnight on speculation that Japanese authorities might have intervened again in the foreign exchange markets. Although Japanese Finance Minister Yoshihiko declined to comment on whether authorities intervened, Yen market players feel the Bank of Japan was active in the market. Some traders believe that the reason behind the plunge was a rumor that Bank of Japan Governor Masaaki Shirakawa may resign.
As mentioned yesterday in my Forex commentary this move by the BoJ, should it prove to be true, was not a surprise, “The break back to 50% of the ‘Intervention Rally’ could be a buying opportunity for bullish Dollar/Yen traders, but it is going to take another round of intervention to get the market moving higher. Since Japanese officials intervened during the opening of the Asian markets, traders will be watching tonight to see if they do it again.”
Technically, the Japanese Yen was hovering around a key 50% level last night at 84.40 when the suspected intervention took place. The subsequent buying powered the Yen a little beyond 50% of the last short-term break at .85.07. Upside momentum could take this market through the last main top at .85.93, thereby solidifying the start of the up trend.
Visiter
Web stat
