Dollar/Yen – Price action in the pair has been quite aggressive this morning with the yen showing rapid appreciation over the past hour, dropping off from 90.15 to j.ust match the critical 87.15 (17Dec) trend lows thus far. Equity and commodity related activity shows no real explanation for the move. However, the moves could be flow related with rumors circulating that a very large US investment house has been on the offer from 90.15, selling well over $500M. The downside break is significant with the price now matching the 87.15 base in such a short time. The 88.45 level that was broken earlier also coincided with the 78.6% fib retracement off of the 87-15-94.60 move and the break back below the latter now ends any recovery prospects in favor of a fresh downside extension now below 87.15 towards intial support at 84.45 (July 1995 low). Setbacks have stalled by 87.15 but there are significant stops reporeted below which are expected to open the flood gates.
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