Sunday, May 8, 2011

FOREXYARD: Forex News Blog

FOREXYARD: Forex News Blog

Link to Forex Trading Education : Forex Trading Blog by FOREXYARD » American economy

Golden Week Holiday Removes Japan from Market Liquidity

Posted: 29 Apr 2011 08:49 AM PDT

printprofile

Today kicks off the beginning of Golden Week in Japan with the observance of Showa Day, previously celebrated as the Emperor's Birthday. As a series of back-to-back holidays, Golden Week is a busy tourist period in Japan that leaves the marketplace devoid of Japanese liquidity.

With the yen fluctuating strongly amid this past week's market events, the impending absence of their market influence, along with Britain's absence in celebration of the Royal Wedding, means the United States will likely lead next week's market movements.

The Japanese yen continued to hold its ground versus the US dollar amid a rapid sell-off in the greenback brought on by this week's Fed statements. As Japan enters Golden Week, this trend may find itself reversed if the greenback undergoes a corrective movement at the start of next week.

Though analysts are hesitant to make a forecast for a bullish USD, a technical retracement or consolidation appears imminent on a number of charts. Whether this move occurs is another story, but worth contemplating after today's largely bullish data releases out of the American economy.

Investors interested in trading the Japanese yen should bear in mind the absence of their home liquidity until after May 5, the last day of holidays during Golden Week. The holidays which occur over the next several days in Japan are: Showa Day (April 29), Constitution Day (May 3), Greenery Day (May 4), and Children's Day (May 5).
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)