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 [...]

Posted in FOMC, Fed Rate Cut Expectations, Federal Reserve, forex blog, usd/jpy 1 Comment »

All of the action in the currency market today centers around USD/JPY. Over the past 24 hours, the currency pair has surged close to 2 percent, pushing all of the Yen crosses higher.
What Is Behind the Power Move?
It is no secret that the Japanese love yield. They were the primary buyers behind [...]

Posted in 2009 japanese yen forecast, usd/jpy 5 Comments »

The U.S. dollar has sold off significantly against the Japanese Yen over the past 2 trading days. It is nearing a very important support level. If it breaks that level, we could see a test and potential break of 95. Given that equities are pressuring USD/JPY lower, a “break” of the 95 [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Forex Technicals, forex blog, usd/jpy No Comments »

The currency and equity markets are turning lower after a strong rally on Tuesday. In my Daily Currency Focus, I talked about the 3 reasons why the currency market rally was suspicious. None of the reasons for Tuesday’s jump delivered real solutions. The market only rallied because Bernanke delivered no surprises. President [...]

Posted in 2009 british pound forecast, Australian Dollar, British Pound, Forex Technicals, aud/usd, forex blog, usd/jpy 7 Comments »

USD/JPY is on a tear this morning. US equities is also trading higher which is completely mind boggling given the fact that US economic data was very weak and Fed Chairman Ben Bernanke warned that we may not be looking at a recovery in the US economy until 2011 or 2012.
There could still be [...]

Posted in Bernanke, FOMC, FOMC Minutes, Federal Reserve, Forex Technicals, Japanese Yen, consumer confidence, forex blog, usd/jpy 7 Comments »