Archived IMT (2010.10.09)

AND SO USDJPY did prove the definite window of opportunity for FX traders yesterday as the disappointing US jobs report pushed USDJPY to a new 15-yr low, 100 pts below the level at which it intervened 3 weeks ago. I still see 80.80 and 79.70 in USDJPY this quarter. BoJ may have to step up its intervention and use of its newly announced easing weapons on Nov 2 to counter the negative USDX effect from the FOMC decision. Traders are aware that no central bank will dare intervene ahead of this weekends G7 meeting in Washington, DC. JC Trichet had the opportunity to talk down the euro in yesterdays press conference, but declined to do so. US jobs were expected +10K, but showed -95K, which cleared another hurdle towards QE. FX TRADERS MUST DISTINIGUISH between the noise (brief counter-trend moves such 50-70 pip bounce in USDX) and the general trend, which remains USDX-negative. Whether it is USDCAD failing to beak above 1.0180 and returning below 1.01 (as alerted yesterday on Twitter right after the disappointing CAD jobs report) or, USDJPY unable to break 83, these are the overall signs helping to confirm USD weakness. In order to TUNE IN FOR LATEST BREAKING NEWS/REMARKS AT THIS WEEKENDS G7 MEETING IN WASHINGTOM for news/statements from central bankers, finance ministers and other politicians, BY FOLLOWING ME ON TWITTER at http://twitter.com/alaidi