Archive for usd/jpy

USDJPY: A Good Buy?

The first two trading days of 2011 has been very kind to USD/JPY. After falling for 2 weeks straight, USD/JPY has finally found a bottom. According to my 2011 Dollar outlook, improvements in U.S. data should help the dollar recover in the beginning of the year. So far, we have seen some [...]

Exactly Why USDJPY is Falling

USDJPY is down on the day and it shouldn’t be surprising for those of you that have been watching yields. Since the beginning of the year, the USDJPY has had a 90 percent positive correlation with 10 year yields. Today, yields are down and accordingly, so is USDJPY. The big debate in [...]

How Far Can USD/JPY Fall?

The U.S. dollar fell to a 7 month low against the Japanese Yen this morning following another barrage of weak economic data. Consumer prices fell, foreign inflows decreased and the UMich consumer confidence survey dropped to the lowest level since August 2009. On FX360.com, I talked incessantly in my daily report about how [...]

Interesting USD/JPY Chart

Look at this, USD/JPY moving along with 2 year yields. What does this suggest? That next week, USD/JPY could bounce. If payrolls is very weak, that may not happen, but U.S. yields are nearing very low levels and short positions area heavily weighted to USD shorts.

Impact of New Japanese Prime Minister on Yen

Japan announced a new Prime Minister this morning - Naoto Kan. Hopefully he will have better luck than his 4 predecessors who resigned with only a year or less in service.
Resignations by Prime Ministers can have a significant impact on the country’s currency because its performance reflects investor sentiment. Forex traders typically [...]

USD/JPY: What is Behind the Sharp Rally

USD/JPY is on a tear this morning following the better than expected jobless claims report. I think traders are relieved that the deterioration in the labor market can officially be blamed on Mr. Frosty because jobless claims have reverted back to pre-snow storm levels. Although I am worried by the sharp rise in the number [...]

Forex Moves in Sept Could Set End of Year Tone

As we begin the second week of trading in September, it is also important for currency traders to know that the performance of the EUR/USD and USD/JPY this month could set the tone for trading for the rest of the year. The following tables compare the performance of the EUR/USD in September with the [...]

How to Trade FOMC

We are witnessing a very powerful move in USD/JPY ahead of the FOMC rate decision. After falling to a low of 95.11 intraday, the currency pair has recovered all of its losses and then some. USD/JPY is now trading back within the Buy Zone, which i determine using Bollinger Bands with a strong hammer [...]