Start your Binary Trading income NOW!!!

Sponsored by Nuffnang.com

Tuesday, October 31, 2006

Yen Outlook (31st October 2006)

In true central banker form there was something for both hawks and doves in the post BOJ report press conference. Governor Toshihiko Fukui kept the rate-outlook fairly open with reference to the possibility of a rate hike by year-end but at the same time the view that Japanese interest rates would remain very low and that there was no predetermined time for a rate increase.

The bond market has latched onto the year-end reference and JGB futures dipped and USD/JPY climbed to 117.82, putting on 50-points from early London lows. The intraday chart showed promise and the possibility of a 118.00 test, which did materialize into the Europe midday. With the daily picture suggesting a reversal the buy side is favoured for the Tuesday session.

Price had broken below a long-term trend support line last session and closed just below but the break has not been maintained and a close above the 117.55 line today could set up a run back to 118.50 before the week is out. EUR/JPY has bounced strongly from 149.20 as commercial bidding underpins the rally to 149.80.

No comments: