Dollar Recovering on Equities, Commodities Sell-Off; Yen Strengthening as Intervention Effects Fade Out

Quote of the day:“Work saves us from three great evils: boredom, vice and need.” – Voltaire

Good morning. As said many times before – history has a nasty way of repeating itself: so the BoJ intervention has failed once again and the Yen is strengthening across the board amid¬†speculation fact that the global growth is slowing. Although USDJPY still holds some of its gains – other JPY pairs, specifically the more risk sensitive ones – are already testing pre-intervention levels and if technicals matter, we have some long tails in the daily charts. Let’s see some:

EURJPY – since it failed to exit the range to the upside yesterday, although it had a good chance to maintain momentum, the bottom is back in the spotlight. No break above 113.50 means no reason to buy it – and even then, if it goes up, sellers will be happy to rush in at better levels. The NFP / Unemployment Data is today’s most important event in the FX Calendar.

Euro Vs. Japanese Yen Daily Chart 8-5-2011

Euro Vs. Japanese Yen Daily Chart 8-5-2011

AUDJPY 

Australian Dollar Vs. Japanese Yen Daily Chart 8-5-2011

Australian Dollar Vs. Japanese Yen Daily Chart 8-5-2011

Here’s the USD index – time to focus on the 76-76.50 top side as it managed to breach above former support (upward trendline)

USD Index Daily Chart 8-5-2011

USD Index Daily Chart 8-5-2011

EURUSD

Euro Vs US Dollar Daily Chart 8-5-2011

Euro Vs US Dollar Daily Chart 8-5-2011

I’ll be back later, have a nice day!

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