FOREXYARD: Forex News Blog | |
- Yen Stabilizes After Intervention
- Crude Oil Trades near $103.50 Level
- Yen Slides after G7 Decides to Intervene in Yen’s Trading
| Yen Stabilizes After Intervention Posted: 18 Mar 2011 06:16 AM PDT
Trading of the yen was significantly less volatile in the European trading session versus this morning as the price of the yen held relatively firm following a coordinated intervention by the G7 nations helped to stabilize the price of the yen. At lunch time during the European trading session, the USD/JPY was trading lower with significantly less volatility at 81.44 after opening the day at 81.81. Yesterday the yen received coordinated support from the G7 finance ministers in both words and in action as the United States, the United Kingdom, Canada, and the European Central Bank all pledged to support the yen on the open market. The joint effort to sell the yen via the central banks' operation desks comes on the heels of the worst disaster in Japan since WWII. Thursday the USD/JPY rose from 78.80 to a high of 81.98. This is in contrast to Wednesday's low of 76.41 after speculators attacked the yen following a breach of the 80 yen level and a lack of a response by the Japanese government. It remains to be seen if the intervention will have a significant impact on the yen given that the previous intervention by the Japanese Ministry of Finance on September 15th had only a short term impact on the value off the yen with the price of the USD/JPY rising 300 pips over three days before the pair resumed its sharp downtrend. Traders should note that following yesterday's intervention, the USD/JPY came off of its low for the day and rose 375 pips before beginning to decline once again. |
| Crude Oil Trades near $103.50 Level Posted: 18 Mar 2011 01:32 AM PDT
Crude oil prices rose significantly yesterday and peaked at $103.63 per barrel. However, the 4-hour chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Forex traders involved with commodities like this can take advantage of this knowledge by going short on crude oil now, and at a great entry price! • Below is the 4-hour chart for crude oil by ForexYard. • The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range. • Point 1: There is a "doji" candlestick formed in the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction. • Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure. • Point 4: Williams Percent Range also supports the downward direction. Crude Oil 4-Hour Chart |
| Yen Slides after G7 Decides to Intervene in Yen’s Trading Posted: 18 Mar 2011 12:24 AM PDT
The Japanese yen continues to dominate economic news. After several days on which the yen appreciated on all fronts, the Group of seven industrial nations has decided to aid Japan by actively intervening in yen's trading. After the G7 announcement, the Japanese currency saw a sharp decline against all the major currencies. The yen almost instantly fell about 150 pips vs. the U.S. dollar, and about 350 pips against the euro and the British pound. Traders are now advised to keep following any updates regarding Japan's nuclear crisis, as any development, for the better or for the worse, will have a prompt reaction in the market. Traders should also follow any indication regarding an intervention from the G7 in the market. Another development that took place during the night was the United Nation vote regarding Libya. The Security Council has passed a resolution endorsing a no-fly zone to halt government troops. As a result, crude oil prices surged and reached as high as $103.50 a barrel. If a clash will take place, prices have potential to surge further. Here are today's leading news events: • 07:00 GMT, German Producer Price Index (PPI)- This report is considered to be a leading indicator of consumer inflation, and tends to have a large impact on the market. If the end result will beat forecasts for a 0.7% growth, the euro is likely to strengthen. • 11:00 GMT, Canadian Consumer Price Index (CPI) – This report is considered to be the most accurate gauge, and thus has a significant impact on the market. If the end result will beat projection for a 0.4% rise, the CAD may strengthen against its major rivals. |
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