Archived IMT (2010.07.30)

YEN STRENGTH EXTENDED overnight after Japanese govt officials said a rising yen should be dealt with monetary policy rather than intervention. The 158-pt decline of the Nikkei-225 is largely the result of currency strength. As European equities and US futures dip into negative territory; EURJPY, CADJPY and USDJPY are all down. EURJPY may have broken that key resistance of 113.40 but continues to struggle against JPY, eyeing 111.60s. CADJPY LOWER HIGHS on the daily chart suggest interim resistance at 82.80, followed by 82.20. EURUSD support stands at $1.2945/50. All eyes on US Q2 GDP exp at 2.5% from 2.7% in Q1, with forecasts ranging from 1.0% to 3.4%.