{"id":13060,"date":"2010-09-15T07:04:25","date_gmt":"2010-09-15T11:04:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=13060"},"modified":"2010-09-15T07:04:25","modified_gmt":"2010-09-15T11:04:25","slug":"yen-reaches-15-year-high","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/09\/15\/yen-reaches-15-year-high\/","title":{"rendered":"Yen Reaches 15-Year High"},"content":{"rendered":"

Source: ForexYard<\/a><\/strong><\/em><\/strong><\/span><\/p>\n

The Yen rose to a 15- year high against the dollar on Tuesday after Japan’s prime \u200eminister won a ruling party leadership vote, reducing the chances Japanese authorities \u200ewould attempt to stem yen gains. The USD\/JPY fell as low as 82.91, its lowest level \u200esince mid-1995.\u200e<\/p>\n

Economic News<\/h2>\n

USD – Dollar Drops against the Majors<\/h3>\n

The U.S. dollar fell against most of its major currencies on Tuesday, touching a 15-\u200eyear low below 83 yen as a break of technical support levels in several currency pairs \u200esparked a stampede out of the greenback. Also the AUD\/USD pair rose as high as \u200e\u200e0.9456, its highest level since July 2008 before correcting itself. Currently the pair is \u200etrading around the 0.9370 level.\u200e<\/p>\n

The significant break came in late morning New York trade on market talk that \u200eGoldman Sachs said in a research note that while it suspects the Federal Reserve will \u200eratchet down growth forecasts, the revision is unlikely to be enough to spark \u200eadditional easing.\u200e<\/p>\n

Another leading indicator released yesterday was U.S. Core Retail Sales. This number \u200ehandedly beat last month’s results but failed to provide strength to the Dollar as \u200einvestors may be waiting for key data due to be released today to implement their \u200etrading strategies.\u200e<\/p>\n

Looking ahead today, the two main news events that may have a very large impact on \u200ethe Dollar and its main currency pairs are the Industrial Production and Crude Oil \u200eInventories at 13:15 GMT and 14:30 GMT respectively. These reports are very \u200eimportant and are likely to impact dollar volatility. Traders should pay close attention \u200eto the market as there is an opportunity to capitalize on the fluctuations which are \u200elikely to follow this release.\u200e<\/p>\n

EUR – EUR Traded Near One-Month High against Dollar<\/h3>\n

The EUR strengthened against most of its major counterparts yesterday, continuing to \u200eprove that for the time being the euro is the solid currency that traders can rely on to \u200eprovide them with steady profits. The 16-nation currency extended gains versus the \u200eUSD on Tuesday, to close at around 1.2980 amid a broad sell-off in the U.S. dollar. \u200e<\/p>\n

The euro experienced similar behavior against the JPY and closed at 109.90.\u200e
\nThe euro’s advance began after U.S. retail sales rose more than \u200eexpected in August, \u200enotching the largest gain in 5-months. Once the euro broke above \u200e\u200e$1.2920-30 area, the \u200elevel that was the top of the range since August, it kept going to a \u200eone-month high of \u200e\u200e$1.3033. The move may be accelerated, as \u200ebeing at parity was a key technical point \u200ewhich may encourage more selling of dollars, \u200eanalysts said. \u200e<\/p>\n

In addition, the single currency, which slid below $1.19 in June on euro-zone debt \u200etrouble, has since risen by more than 8% after smooth government debt auctions in \u200eGreece, Portugal, Spain and Ireland eased concerns.\u200e<\/p>\n

JPY – Yen at 15-Years High vs. Dollar<\/h3>\n

The yen rose to a 15- year high against the dollar on Tuesday after Japan’s prime \u200eminister won a ruling party leadership vote, reducing the chances Japanese authorities \u200ewould attempt to stem yen gains. The USD\/JPY fell as low as 82.91, its lowest level \u200esince mid-1995 before correcting itself. Currently the pair is trading around the 84.60 \u200elevel.\u200e<\/p>\n

The yen has gained more than 10% against the dollar this year as recent weak U.S. \u200edata and record low bond yields drove money away from U.S. assets.\u200e<\/p>\n

Investors worry over a recent rise in the JPY as it makes Japanese products less \u200ecompetitive abroad and hurts the value of overseas sales when translated back into the \u200eJapanese currency. With steady gains primarily against the dollar, much of the yen’s \u200ebullish movement could be contributed to the repatriation of overseas earnings by \u200eJapanese companies into the local economy. This has had a positive effect on major \u200eJPY currency pairings, as the rising turmoil in the market is leading to greater \u200einvestment in the Japanese currency.\u200e<\/p>\n

Oil – Traders Await Crude Oil Inventory Report<\/h3>\n

Oil settled below $77 a barrel Tuesday as the stock market swung between losses and \u200egains on mixed economic news. After a run-up from $72 a barrel at the end of August, \u200ecrude oil has again slowed its advance, mainly on concerns about the strength of the \u200eglobal economy. While positive news on China’s economy has tended to push prices \u200eup, data from the U.S. and Europe has been a mixed bag, keeping a lid on price \u200eincreases.\u200e<\/p>\n

Today, the release of the crude oil inventory report is likely to help determine the \u200emarket’s next direction for black gold. Moreover, a release of a string of positive \u200eeconomic figures from U.S. could help its bullishness. Therefore, traders are advised \u200enow to make some profits as the price of crude oil is set to remain volatile in the short \u200eterm.\u200e<\/p>\n

Technical News<\/h2>\n

EUR\/USD<\/h3>\n

There appears to be a bullish cross on the hourly chart’s Slow Stochastic for this pair, \u200eindicating an upward correction may be imminent. The recent bullish cross on the \u200edaily chart’s Slow Stochastic supports this notion. Going long might not be a bad idea \u200etoday.\u200e<\/p>\n

GBP\/USD<\/h3>\n

The price of this pair appears to be floating in the over-sold territory on the RSI of \u200eboth the hourly and daily charts, indicating that we could see an upward correction in \u200ethe nearest future. The bullish cross on the hourly chart’s Slow Stochastic supports this \u200enotion. Going long might be a good strategy today<\/p>\n

USD\/JPY<\/h3>\n

After yesterday’s volatile price movements, this pair appears to have temporarily \u200ecalmed down. The price appears to be floating in neutral territory on most oscillators \u200eand momentum appears to be showing a flat price movement. Waiting for a clearer \u200esignal might be the right choice today<\/p>\n

USD\/CHF<\/h3>\n

The Bollinger Bands on the hourly and daily charts appear to be tightening in \u200eanticipation of a volatile movement. With the recent bullish cross on the 4-hour chart’s \u200eSlow Stochastic oscillator, the impending movement may be a downward correction. \u200eGoing long with tight stops might be the right choice today<\/p>\n

The Wild Card<\/h2>\n

Platinum<\/h3>\n

The continuous upward trend in this commodity appears to be running out of steam \u200elately. The highs of the upswings have begun to diminish in size and the longer-term \u200eoscillators are beginning indicate an imminent correction. There appears to be a bearish \u200ecross on the daily chart’s Slow Stochastic, and the weekly Momentum oscillator has \u200eturned downwards. \u200e Forex traders have a great opportunity to enter this possible trend \u200ereversal at a fantastic price and capture the impending price swing.<\/p>\n

Forex <\/strong>Market Analysis provided by ForexYard.<\/a><\/span><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

By ForexYard – The U.S. dollar fell against most of its major currencies on Tuesday, touching a 15-\u200eyear low below 83 yen as a break of technical support levels in several currency pairs \u200esparked a stampede…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13060","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=13060"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13060\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=13060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=13060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=13060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}