The Comeback of the Yen

Daily Forex Fundamentals | Written by Crown Forex | Oct 21 08 14:51 GMT |

The Forex markets witnessed significant movements after the beginning of the US session after quite a calm trading day. As the session began, the dollar maintained some of its gains recorded yesterday as Mr. Bernanke was revealing the idea of a new bailout plan. Gains were held onto for most of the day today but again as the US markets opened unwinding of carry trades slowly took place resulting in the Yen to incline against majors. We see the 15 nation currency retreating against the Yen as investors lose their risk appetite and confidence in higher yielding assets as they believe that the financial market turmoil will continue. As for the EUR/USD pair, we see it has fallen significantly from the 1.3370 level which is the 200 day moving average on the weekly chart to currently trade around the support level at 1.3150. The pair recorded a high of 1.3352 and a low of 1.3154. The Sterling Pound was able to close below the 1.7340 level for two consecutive weeks which provided the pair with enough bearish momentum to extend its gains to as low as 1.6790 which is the downside target on the medium term. Today, the royal currency is retesting the 1.7000 level which could perhaps open the way to the previously mentioned target. The pair was able to record a high of 1.7196 and a low 1.6959 so far. The Japanese Yen is finding a lot of support as investors are unwinding. The USD/JPY pair is currently facing a minor support at 100.90 which is what halted further downside movements but the general trend for trading for today remains to the downside. The pair recorded a high of 102.14 and a low of 100.70. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.