U.S. Dollar Soars as Prime Minister Resignation Shakes up Japanese Yen

The Japanese Yen is the featured currency today. The Yen istrading lower, pressured by the news of the resignation of Japanese PrimeMinister Hatoyama. Traders are dumpingthe currency which means money has to be flowing into another safe havencurrency.

The Japanese Yen is the featured currency today. The Yen istrading lower, pressured by the news of the resignation of Japanese PrimeMinister Hatoyama. Traders are dumpingthe currency which means money has to be flowing into another safe havencurrency.

The USD JPY is rallying on speculation that the next primeminister will be Naoto Kan who favors a weaker currency.

Technically, the USD JPY is in a strong position afterbreaking through a 50% resistance level overnight at 91.61. This sets up apotential rally to the Fibonacci retracement level at 92.41. A breakout overthis price could trigger an acceleration to the upside.

The GBP USD is trading lower after the euphoria from yesterday’snews that Prudential is pulling out of the AIG deal appears to have wornoff.

Technically this market failed to reach its short-termobjective at 1.4810, which could have given weak longs an excuse to cutpositions. Based on the current chart formation, look for a possibleretracement to 1.4499 to 1.4435.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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