Wednesday March 9, 2005 - 20:58:47 GMT
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THE DOLLAR TAKES IT ON THE CHIN AGAIN
Europe decided that they didn't like the dollar this morning. When New York got it we got more of the same attitude. The dollar opened in New York near the lows seen over night, had a minor rally and then when it could not trade higher managed to make new lows for the day. We saw JPY crosses getting sold overnight. The selling in the crosses continued into the New York morning. This unrelenting selling of the crosses is what spurred on the selling in usd/jpy. The dollar selling in usd/jpy then put pressure on the dollar across the board. We saw increased dollar selling in the major pairs following the sales in usd/jpy. Since making the new lows for the day the dollar has managed to gain back just a bit of ground and any bounces we have seen so far have been limited. As for today's action in New York we saw usd/jpy trade from the highs near 104.30 down to the lows near 103.65. We saw eur/usd trade near the lows at 1.3330 to the highs near 1.3425. With a lack of U.S. economic data to influence the markets we could see this dollar selling continue
Usd/jpy currently trades below the 30,100 and 200 hour moving averages. We see support coming in near the 103.55/65 area and then again near the 103.30/35 area. We see resistance coming in near the 104.00/10 area and then again near the 104.30/40 area. The modified stochastic on the hourly chart is in oversold condition and is poised to turn upwards.
GAIN AN EDGE
We look to sell usd/jpy on rallies. We look to go short near the 104.30 area. We will stop ourselves out on a break above the 104.80 level. We look to take back our short near the 103.30 area.
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