The USD JPY strengthened for a second day astraders turned a little more optimistic about a U.S. economic recovery.
The USDJPY strengthened for a second day as traders turned a little more optimisticabout a U.S.economic recovery. Traders are looking for a slight improvement in the U.S. jobsmarket this Friday. This is helping to support the idea that while the U.S.economy may not be boosting a strong uptrend, it is most likely building astronger support base.
Accordingto a Bloomberg survey, the U.S.may have added 140,000 jobs and the unemployment rate may have eased to 9.7from 9.8. Yesterday’s ISM Factory Index report showed a slight improvement andleading investors to feel a little better about the economy in 2011.
Buyersstepped into the USD JPY after the market pierced the 81.00 level and held theNovember bottom at 80.24. Based on themain range of 84.51 to 80.92, traders are now looking for a retracement to82.71 to 83.14.
Althoughthe main trend on the daily chart is still down, the GBP USD rallied on datathat showed British mortgage approvals unexpectedly rose and before a favorablemanufacturing report.
Currentlythe British Pound is making a recovery of the short-term range of 1.5911 to1.5345. The first upside target is a retracement zone at 1.5628 to 1.5695. Thebigger picture is suggesting that the market may continue its correction to1.5822 to 1.5935.
The USDCAD continues to remain under pressure because of the strength in the oilmarket. The Canadian Dollar finished close to a 2 ½ year high and is expectedto continue to rise as global demand for crude oil is expected to sent thismarket to $100 over the near-term.
Forfurther information on this and other Pattern, Price & Time products visitour website at www.patternpricetime.com