Why USD/JPY Could Continue to Fall
Last Friday, the CFTC released their weekly report of futures positioning. According to the data, which was as of last Tuesday, short positions in the Japanese Yen hit the highest levels since August 2008. At that time, the Yen weakened significantly and soon after a short squeeze pushed the currency sharply higher against the U.S. dollar. The following chart illustrates the strong relationship between Yen positions and the JPY/USD (the inverse of USD/JPY). Right now the Yen is rising against the dollar despite the fact that traders are substantially short…

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In the weekly forex outlook on Forex TV , I spoke with Julie Sinha about the continuing dollar strength, the position of the kiwi dollar and the calendar, following the dollar’s storm last week, which came to a peak after the nonfarm payrolls . Enjoy the video! Want to see what other traders are doing in real accounts? Check out Currensee ....
What is the difference between the Discount Rate and the Fed Funds Rate? On Thursday February 18th, the Federal Reserve surprised the markets by raising the discount rate by 25bp to 0.75 percent, sending the U.S. dollar sharply higher against all of the major currencies. Although the Fed went out of their way to say that this does not equate to a...
It’s still anyone’s guess as to if and when China will allow the Yuan (RMB) to continue appreciating. You can see from the chart below – which shows the trading history for the RMB/USD December 2010 futures contract – that expectations of revaluation have eroded steadily since December 2009. At that time, it was projected...
Start Options , a provider of binary options now offers 24 hours of trading, thus adjusting to the forex market. Binary options are an alternative to the traditional stop loss, and this development makes them more accessible to forex traders. Forex binary options can be used instead of the traditional stop loss in order to defend a forex trade trade...
Over the past few trading days, the British pound has been confined to a very tight trading range. The following chart illustrates the predicament that GBP/USD traders find themselves in right now and I believe that the breakout will be to downside with the GBP/USD testing 1.60 in the near term. This morning, Standard & Poor’s announced...
USD/CAD is now falling and approaching an important resistance line. This happens as the US dollar is strong, with traders focusing on the collapse of the Pound. The loonie has reasons to rise – a strong economy that is accelerating. The pair is now facing a test: The dollar is storming through the markets. This is strongly felt in GBP/USD....
Non-Farm Payrolls must show gains in jobs this time – the high expectations became higher with the release of the ADP figure that was better than expected. Will there be dollar rally on Friday? Here’s a preview for the Non-Farm Payrolls for January. Last month’s Non-Farm Payrolls were disappointing and showed a loss of 85,000 jobs...
Price action on AUD/USD, a daily chart of which is shown, continues to display some robust bullishness on its sustained rebound off the late-December low. This rebound has broken out above several resistance levels, including a short-term downtrend resistance line extending from the 15-month high around 0.9400 that was hit in mid-November. Currently,...
Bernanke’s support for the U.S. dollar and Federal Reserve President Lacker’s comment this morning that the central bank is paying close attention to the value of the greenback has driven the buck higher against all major currencies. The last time Bernanke surprised the market with a comment on currencies was back in June 2008. Although...
Advance GDP for the fourth quarter showed a super-strong growth of 5.7%, much better than expected. The market’s reaction isn’t strong. There are two reasons for this slow initial response. The highest growth rate in 6 years doesn’t impress the markets. EUR/USD ( in a lower range ) is trading at 1.3940, only 30 pips below the price...
Related Tweets from Twitter
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rebeccarocksyou (Rebecca) : @MarcDworkin I understand the feeling.I have to update from my phone most of the time while hiding in a bathroom.Wow,I need an intervention... Updated : 2010-03-10T15:14:31Z | Reply | View Tweet |
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AdamThierer (AdamThierer) : at #FTC #journalism event, Chairman Leibowitz says govt intervention of some sort will be needed to assist #media; no specifics provided.. Updated : 2010-03-10T15:12:53Z | Reply | View Tweet |
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MzLena23 (Marlena Davis) : Can someone tell my appetite to get back over here?! Bcuz in one min I'm gonna be lookin like I need 'intervention' ?.. Updated : 2010-03-10T15:10:40Z | Reply | View Tweet |
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