Warning: Missing argument 2 for wp_widget() in /home/passi4/public_html/jpyforexfan/wp-includes/widgets.php on line 76 Yen | Forex blog - JPY forex fan - Part 2
The Japanese yen, long a shelter for risk-averse investors, was heavily bough yesterday and in Asian forex trading today as regional stock markets skidded because of fear about US growth prospects.
“As market participants appear to be focusing on [U.S. dollar] weakness driven by concerns about the U.S. economy and receding U.S. rate expectations, USD/JPY, which has traditionally been sensitive to yield support, lost ground,” Tomoko Fujii, a strategist at Bank of America Securities-Merrill Lynch, said in a note to clients Friday, cited by MarketWatch.
Yesterday the euro rallied to above $1.2900, forming higher high and higher lows, as a successful Spanish auction eased worries about Europe, while signs of a slowdown in US economic growth pressured the greenback.
Makes me want to have shorted the USD/JPY instead of the EUR/JPY. Arghh.
It’s 14:37 GMT, Friday, and yep, I am going in the other direction.
Stop Loss as per my trading plan
Target: I’d expect lower than 107 but I haven’t set a Take Profit for now.
The daily chart of the EUR/JPY forex pair as of now:
Japan’s unemployment rate rose in May to a seasonally adjusted 5.2%, according to government data released Tuesday, marking an increase from 5.1% in April and confounding expectations for a drop in the jobless rate. Industrial production fell by 0.1% in May from April, according to a separately released report. See full story on Japan economic data.
China’s signal of an end to the yuan’s fixed rate to the dollar may accelerate a shift toward domestic demand as the prime driver of growth as President Hu Jintao seeks to strengthen household incomes. The Dow opened about 1.16% higher than last week’s close. US dollar and yen dive a little. Th euro is strengthened.
Asian stocks dropped for the first time in six days and metals fell after U.S. housing starts plunged the most in more than a year. The yen gained as Spain’s plan to publish bank stress tests renewed European debt concern.
The MSCI Asia Pacific Index declined 0.2 percent to 115.55 at 11:30 a.m. in Tokyo after five consecutive gains that pushed the gauge to a four-week high. Copper decreased 1.4 percent, sliding for a second day. The yen rose 0.5 percent against the euro, and strengthened against all 16 major counterparts. Futures on the Standard & Poor’s 500 Index fell 0.4 percent.
Housing starts slumped 10 percent, the biggest decline since March 2009, according to figures from the Commerce Department. European Union leaders may agree on ways to tighten financial-market regulation at a summit meeting today and Spain’s central bank said yesterday it plans to publish the results of stress tests carried out on the nation’s lenders to counter speculation it needs international aid.
“Investors are inclined to book profit,” said Mitsushige Akino, who oversees $450 million at Tokyo-based Ichiyoshi Investment Management Co. Uncertainty “and a loss of confidence have driven down the market even though the global economy remains resilient.”
Very interesting, guys! What Kathy Lien is saying in this video is that, basically, this talk of the yen being traditionally strong in the month of March is a load of bull… Her studies show that in the last 10 years only AUD/JPY showed yen strength (7 out of 10 years). USD/JPY, EUR/JPY, GBP/JPY and NZD/JPY have not shown even such mild bias.
