EURUSD 1.1851 |
USDJPY 111.52 |
GBPUSD 1.3772 |
AUDUSD 0.7485 |
USDCAD 1.2406 |
GBPJPY 153.59 |
EURJPY 132.15 |
AUDJPY 83.48 |
CADJPY 89.86 |
Silver 26.23 |
During yesterday's sleepy markets, I highlighted in this tweet the rally in bund futures (rising prices, falling yields) may signal similar price action at the subsequent session, when US bond yields/prices return from Memorial Day Weekend. Today's bond price action did not disappoint, as the homogenous asset class moved in concert, delivering gap ups in prices and falling yields. This was a desperately needed development for yen bulls (particularly USDJPY shorts). Interpret what you wish from the chart below as to which is the dependent and independent variable (USDJPY or yield spread). Who leads whom? Shorting USDJPY has been the "pain trade" for our WhatsApp Broadcast Group, as we await Wednesday's debt ceiling vote and the JOLTs survey. Hanging in there.
Ashraf
The analysis is very precise, So looks like 95.45-96.20 Area was Confirmed Effective
Support yesterday, Even DJI Rise 150 but 97.35 Limited it Increase scope!
DJI at 8000 Place above As if Coming to a stop, if Stock market Return to warmer
weather, Then USD/JPY You thought can Looks at high one?
which is 98.75 or Higher.
Thanks
Francis
My base case scenario is for yen to drop across the board and stocks to rally from mid November till mid January. under which 96 may hold up but id say 95.00 just to play it on the safe side. This scenario is more of a seasonal analysis that Im using rather than a change of fundamentals. If not mid November then maybe towards Thanksgiving.
Having said that, stocks are undergoing a severe loss of confidence, whereby each and every advance is followed by more than twice as much in declines. fundamentals are simply horrible and unemployment has yet to exceed 8.5% from the current 6.5%. so be careful.
Ashraf
USD/JPY support at 96.20, what do you think until to Jan 2009!?
Thanks
Francis