These Should be on Your Radar Screen

January 21, 2013 - 6:22am
The US dollar begins the week mostly firmer. The notable exception is the Japanese yen, which has seen some position adjustment ahead of the outcome of the BOJ meeting tomorrow. In Asia, and Europe thus far, the dollar has found support near its five day moving average and the 38.2% retracement of its latest leg up (from Jan 16), both of which come in near JPY89.30. The recovery of the yen took a toll on Japanese stocks. The Nikkei lost 1.5% and posted an outside down day (trading on both sides of Friday's ranges and finishing below Friday's low). The euro has been confined to an exception narrow range of about 15 ticks on either side of $1.3315. A break of support in the $1.3260-80 area would lend credence to our argument that a top of some import is being carved out, with a potential double top at $1.34. Sterling saw follow through sel...
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