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Dollar/yen Investors Once Again Eyeing Upside Resistance

Posted by WorldWideMarkets . on Jul 10, 2013 3:33:00 AM
With the dollar at 100.57 yen, investors are back to looking at 103.73, the May 22 peak, as the next resistance before the 105 level. The dollar lost 9.6 percent between May 22 and June 13, and has recovered 8.3 percent since the recent trough. The yen strength came on safe haven flows as investors began to doubt Abenomics.  The reversal came on dollar strength as investors took Fed Chairman Ben Bernanke at his word and that U.S. quantitative easing could end as soon as September. Those who held their ground during the dollar’s decline must be happy but there was no indication that Bernanke would be the catalyst and in this case it may be more luck than anything else. The dollar fundamentals were always looking good but the sudden downdraft in the U.S. currency against the yen on strong volume was something few would have bet against. Going forward it may be easier. The Japanese authorities are clearly in easy money mode. The Fed is looking to reverse its stance of recent years as soon as possible. But ignoring the big dives will always be hard when you are on the wrong side of the trade. yen currency trading

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