Monday January 24, 2005 - 18:57:58 GMT
Share This Story
Forex.com - www.forex.com
The dollar traded mixed on a day where more “talk” about the EUR/JPY cross dominated trading activity. In an uneventful mode, EUR/USD fell from 1.3095 to 1.3028 while USD/JPY dipped from 102.90 to 102.61. Meanwhile, EUR/JPY knifed from 134.65 to 133.80 as more jawboning efforts from various European Finance Ministries about Asia’s role in weakening the USD seemed to catch the market, once again, off guard or even more specifically long at the top end of the range (i.e. above 134.40). In all likelihood, ECB President Trichet should echo similar sentiments about Asia bearing some of the burden of a weak dollar in his speech overnight (the excerpts of this speech will not be released until 8 GMT tomorrow). But of KEY importance will be whether or not the US also adopts this “company line” and if so how will it be translated to the financial markets once the February 8-9 G-7 meeting concludes. By the looks of things, EUR/JPY could be headed for a sever move lower in the coming months especially if the G-7 meeting provides solidarity on the issue.
We see key support at 133.80 and 133.10-00 in EUR/JPY. There is congestion up near 134.65-80 and psychological resistance at 135.00, 135.50. A move through 133.00 could be VERY bearish for the long term EUR/JPY players.
GAIN AN EDGE
We will sell EUR/JPY on a 135 approach with a 132.75 limit and 135.75 stop.
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."