As the yen looks to halt its sharp gains in the past week or so, investors started to take advantage of the stronger currency to buy overseas assets. |
The dollar's decline was quite fast, particularly last week, so it's very likely we will see a correction upward. Sentiment remains bearish for the dollar, but the currency needs to rebound first. |
These two currencies see an overbought condition against the dollar and technically may face some slides for now. Their rising trends will remain in place but we need to have a downward correction first. |
We could have hit-and-run moves by speculators trying to break those levels around 117.30-117.35. This meeting could be a milestone in Japanese history so it's hard to push the yen lower even if rates don't rise soon. |
We could have hit-and-run moves by speculators trying to break those levels around 117.30-117.35. This meeting could be a milestone in Japanese history, so it's hard to push the yen lower even if rates don't rise soon. |
While the U.S. interest rate outlook is supportive of the dollar, people are reluctant to buy it from here because of Japanese GDP. There's also a lot of concern that if commodities continue falling, hedge funds will have to buy back even more yen to unwind their carry trades. |