Quote of the day: “You will find that the State is the kind of organization which, though it does big things badly, does small things badly, too.” ~ John Kenneth Galbraith
Good morning. If you just opened the charting platforms, you may want to check the JPY pairs as there’ve been some wild moves overnight: after several warnings and much wait, the Bank of Japan finally stepped in to weaken the Yen, this being the first solo intervention since 2010. It’s early to say where the pairs will become exhausted and it’s not the wisest thing to buy the Yen right now. Let’s see if there are any important levels on the way of this recovery – but keep in mind that technical levels are almost meaningless when the market is on steroids due to interventions or other rare events (i.e.: natural disasters)
CHFJPY – things are getting quite interesting here because CHF pulled back yesterday on SNB’s announcement, but it’s back above 100 on BoJ’s intervention – and the SNB is next in line to intervene, so we’re basically looking at a CB Intervention/CB Intervention chart – not the best tradable pair right now. According to Bloomberg, Barclays recommended to sell CHFJPY yesterday – not the best thing to do so far, but who knows what the SNB is up to?
Swiss Franc Vs. Japanese Yen Daily Chart 8-4-2011
USDJPY – 80 is probably the line in the sand here.
US Dollar Vs. Japanese Yen Daily Chart 8-4-2011
EURJPY – retesting the top of the range / former support. It has a good chance to maintain momentum after today’s ECB Rate Decision and press conference (see FX Calendar)
Euro Vs. Japanese Yen Daily Chart 8-4-2011
AUDJPY – yet another short-lived breakdown. It will probably stabilize above 84 now, so look for a retest of the falling trendline
Australian Dollar Vs. Japanese Yen Daily Chart 8-4-2011
EURUSD – all eyes are on ECB today
Euro Vs. US Dollar Daily Chart 8-4-2011
EURAUD
Euro Vs. Australian Dollar Daily Chart 8-4-2011
