Start your Binary Trading income NOW!!!

Sponsored by Nuffnang.com

Monday, November 20, 2006

Yen Outlook (20th November 2006)

JPY traded on a heavier footing in a lacklustre European morning session. The weekend G20 offered little for the market and traders focused on speculation that the Japanese government's economic report may been downgraded due to sluggish personal consumption. EUR/JPY pressed higher and managed to take out 151.50 barriers to record a 151.68 record high.

ECB Chief Trichet, cited continued vigilance on inflation, which helped the EUR/JPY bid tone. Although, JPY was already in the decline due to decent Japanese real money interest for overseas assets and reports of carry trade interest in general. USD/JPY pushed on the upside but was unable to overcome 118.20 offers. This left light 118.25 stops intact and kept spot well within the recent 117.10-118.60 ranges. We expect carry trade flows to influence in the afternoon session, with only US leading indicators on the data schedule.

As we approach the US Thanksgiving holiday US money managers and hedge funds may lighten up positions, which could work against the USD/JPY and EUR/JPY upside. EUR/JPY has already been subjected to model fund profit taking and this activity may increase.

No comments: