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Home Forex Forex Trading Updates and Views Forex Trading: Beware the Yen
Forex Trading: Beware the Yen PDF Print E-mail
Written by Sam Coventry   
Monday, 19 July 2010 09:05
A roundup of technical views on the forex trading markets.

The yen’s surge to its highest level of the year against the dollar has put investors on alert for possible currency intervention by the Japanese authorities this week.

If Japan acts to shield its stock markets and exporters from the rising yen, it will be the first time Tokyo has intervened in the foreign exchange markets since April 2004, the FT reports.

Delta Index the forex spread betting providers have called a Buy on the GBP CHF pair.

"GBP CHF - MACD Crossover. Signal: Buy @ 16069, Stop 15914, Initial target 16353," reads a morning technical note.

Simon Denham at forex spread betting providers Capital Spreads says:

"Currency markets are responding to the IMF announcement with strong buying of the euro and my comment of earlier in this report has rather been overtaken by events.  

"When written the euro was below 1.2900 but is now up at 1.2960 and looking strong for the session.  Markets like certainty (even if the certainty is unpalatable) and the decision to admit that there is a point at which the lenders will not go beyond may well be a seminal one.  

"The euro has problems that will go on for years and years to come, problems that will bury some of the weaker members, but if the political will is to hold the structure together, come what may, and to make the harder choices that will enable this to be the case then the argument for the demise of the euro become less overwhelming.  Yes, the euro is probably overvalued but not to the extent that will force its capitulation.

"Sterling is being pulled around by the euro but has been falling versus euroland for some time now.  Three weeks ago we were up at 1.2400 but are now struggling down at 1.1815.  While the pound has been gaining ground over the dollar rallying above 1.5000 to the current 1.5335 this has not been enough to keep pace against the euro."
Last Updated ( Monday, 19 July 2010 09:08 )