Thursday December 2, 2004 - 20:03:35 GMT
Share This Story
Forex.com - www.forex.com
DOLLAR TESTS LEVELS SEEKING INTERVENTION
The dollar fell below 102 yen to its lowest against the Japanese currency in nearly five years in early London trading, as the market tested how far Japan was willing to tolerate the impact of dollar weakness and yen strength. It was also reported that the head of General Motors Corp. said the yen needs to strengthen to 90 to the dollar if U.S. auto makers are to compete better with their rivals in Japan, the Wall Street Journal reported on Thursday. It seemed like a free pass to further short the Dollar but was met by Japanese player buying on a dip through 102.00 and this ran Dollar/Jpy back to 102.75 a couple of times before the market took out stops above 102.85/90 and Dollar/Jpy continued to cruise higher and touch upon 103.40 before backing off slightly. Euro tested again higher putting in a high of 1.3380/85 before slicing lower based on profit taking and stop loss selling through the key supports of 1.3330 and 1.3280 before putting in a low of 1.3235/40. Tomorrow brings the Non Farm Payroll that has stirred up the market significantly over the past few months.
Dollar/Jpy after a spike through key resistance of 102.85/90 is forming a flag on the 60 minute chart between 102.98 and 103.40. The 200 hr moving average is at 102.89 on this same 60 minute chart. The Relative Strength Index is a positive 61.35 reading. There is trend line resistance at 103.70/75.
GAIN AN EDGE
We look to buy Dollar/Jpy on a dip to 102.95/103.00 and more at 102.75/80 with a stop below 102.40 and a take profit of 103.40 for half of the position and 103.65 for the balance. Either way, we expect another riveting week of trade in the f/x markets.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."