Ulises Horne
|
 |
Early-week money market news that Lehman Brothers filed for bankruptcy online forex trading forex sent the Yen significantly higher through open, but subsequent announcements from the Federal Reserve and other major central banks seemed to bring temporary calm to money market financial markets. The week ahead will likely see continued volatility in the Yen and other risk-sensitive currencies especially as 1-week implied volatilities on JPY options forex micro trading forex remain at their highest since the Asian Financial Crisis and the collapse of Long forex trading signals Term Capital Management. Our long-term Japanese Yen forecasts remain bullish, but the short term is far less clear. If such trends continue, we could see the USDJPY rally further money market currency broker off of recent lows. - Early-week financial retail forex broker market distress means Japanese Yen dominates - Later, the Japanese Yen Dives as Celia Trade Recovers - Forex trading market conditions improve as financial distress eases The Japanese Yen saw an incredible week of volatility against the US dollar and other major forex counterparts, as dramatic forex trading software shifts in the US Dow Jones Industrials Average and other major risky asset classes led to similar movements in the East Asian currency. If price action is any indication, it seems that traders are once again willing to take on risks and short the Yen against higher-yielding counterparts. Bullish The Japanese Yen saw an incredible week of volatility against online forex exchange the US dollar and other major forex counterparts, as dramatic shifts in the US Dow Jones Industrials Average and other major risky asset classes led to similar movements in the forex trading software East Asian currency. Fundamental Forecast for Japanese Yen. Equity traders seem willing to take on risk and sent the DJIA to its best two-day performance in six years. Such price action suggests forex micro trading that financial institutions are willing to leave the safety of Treasuries and seek higher short-term yields on the interbank lending market. Early-week news that Lehman Brothers filed for bankruptcy sent the Yen significantly higher through open, but subsequent announcements from the Federal Reserve and other major central banks seemed to bring temporary calm to financial markets. Yet it serves to note that the US Dollar/Japanese Yen pair stopped abruptly at key technical resistance through close easing over 100 points before a smaller bounce. If the USDJPY is unable to test and break through the 61.8 percent Fibonacci retracement of 110.70-103.50 at 108.00, short-term risks remain clearly to the downside. Key questions remain as to whether recently-announced US Federal Reserve and Treasury plans will be enough to bring a sustained calm to distressed credit markets. We see that safe-haven US Government case yields have jumped substantially in a short two-day span, while equivalent money market rates have fallen. Of course, we have seen market risk appetite vary dramatically in the past week alone, and our Japanese Yen forecast is far from clear on broader indecision across all traded markets. Yet it is far from clear whether we can expect similar price action through upcoming forex trade, and JPY traders should be wary of the possibility that this is yet another false gerri for financial markets. If price action is any indication, it seems that traders are once again willing to take on risks and short the Yen against higher-yielding counterparts. Of course, we have seen market risk appetite vary dramatically in the past week alone, and our Japanese Yen forecast is far from clear on broader indecision across all traded markets.
|
