Thursday July 22, 2004 - 19:59:06 GMT
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DOLLAR REMAINS FIRM
The U.S. dollar was firmer initially this morning when initial jobless claims came in better then expected. Economists were expecting 345k while the actual figure came in at 339k. The DXY made a move up to 88.60 on this news before coming off. We then saw the release of the Conferences Boards index of leading U.S. economic indicators. The indicator fell by .2% in June after rising .4% in May, expectations where for no change in the index. This was the first decline we have seen in this indicator in a year. EUR/USD made a move down to 1.2230 area on the dollar strength, but then reversed and headed up to 1.2290 on concerns of a passenger train that was halted in New Jersey for an hour. We saw yen strength today as Governor Toshihiko Fukui stated that the Japanese economy was gathering momentum as a recovery lead by exports and capital investment spreads to consumers. USD/JPY moved down to the 109.30 level this morning on his statements, coming down from a high of yesterday in the 110.30 area. It is essentially now unchanged on the day. Cable managed to retrace some of recent weakness as it has come off the recent move above the 1.87 level. We saw offers lifted as a run was made up the 1.85 level before backing off.
TECHNICALLY SPEAKING Dollar/Jpy has picked up the uptrend after taking yesterday off. The Relative Strength Index has a positive reading of 59.16 on a 60 minute chart. There is trend line support seen at 109.25 and 108.90/109.00. There is resistance at 110.35/50 in the near term.
GAIN AN EDGE We look to buy Dollar/Jpy at 109.25/30 with a stop below 108.70 and a take profit of 110.25
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