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by Ashraf Laidi
Posted: Oct 22, 2008 15:32
Comments: 6
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Yen Still Outperforms in Forex Meltdown

As the dollar continues to rally against higher yielding currencies, the yen remains the clear outperformer during the latest market sell-off, making GBPJPY and NZDJPY the greatest losers in today's forex activity.
 
Ashraf Laidi
London, UK
Posts: 0
12 years ago
Oct 24, 2008 10:46
Ced, stick with remaining long USD except against JPY. CHF is best bought against EUR, GBP, AUD and NZD.
Ced
London, UK
Posts: 12
12 years ago
Oct 24, 2008 10:41
Ashraf,

USD/CHF is going down big. Should I cut losses or wait?

Ced
Ashraf Laidi
London, UK
Posts: 0
12 years ago
Oct 24, 2008 9:40
Steve, USDCAD is testing the important 1.2730-40 resistance which is the high from March 2005 and the low from January 2004. Such confluence suggests decent resistance, which could especially hold if OPEC surprises with a bigger than expected rate cut. But if the status quo holds, expect to break this major resistance and head on 1.30.

Ashraf
Steve
New York, United States
Posted Anonymously
12 years ago
Oct 24, 2008 9:11
Ashraf,

You said usd/cad can go down to as low as 1.22? What is the cap. Your advise. Tks.
Ashraf Laidi
London, UK
Posts: 0
12 years ago
Oct 23, 2008 18:46
Tim,

I wouldnt call the JPY "junk" as Japan is the most isolated from the subprime mess. Even Switzerland is affected by the Eurozone's exposure to the CDO and CDS meltdown. So the reason the JPY is the best performer is its LOW YIELD as well as its RELATIVE ISOLATION from this toxic instruments. Now, when risk appetite is being put back in and stocks begin to rally (or a week or two) the JPY will undoubtedly lose ground, but this would present a great opportunity for BUYING IT again.

LAST WEEK was a great example. as USDJPY was rising due to that short term recovery in stocks, I warned that 102.50 and 103.00 were key resistance levels. We all know what happened after that.

Ashraf

Tim
California, United States
Posted Anonymously
12 years ago
Oct 23, 2008 16:19
Ashraf,
Many thanks for your comments on the YEN.
In the long view though isn't the yen 'junk' too?
And even in the shorter view, isn't the EUR a little bit overdone against YEN?
Tim