The Dow Jones Industrial Average is rallying – pushing for a third session of higher highs. This has taken the safe haven discussion off the radar for now. But I believe it will return. There will be some end-of-quarter fund manager re-positioning here and that window dressing is always a part of month-end, quarter-end, and year-end trading.
The topic here is about the line-in-the-sand on the USD/JPY. The pair has been hovering just above a 20 pip area that I believe traders feel will get the BOJ active selling yen once again but it’s persistence with which prices remain here that beg the question: How much longer until yen bulls feel emboldened to buy the yen again? It all depends on how long the BOJ intervention threat is weighing on trader’s minds. A resumption of the U.S. equities downtrend could put a lot of pressure on the USD/JPY.
Thurs Sept 15 Raghee Horner
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