YEN

The EURJPY cross is being supported by a stronger stock market.  

EURJPY is testing 100 hour MA resistance at the 167.67 level.  A break above will target KEY resistance at the 168.00-168.02 level.   The 200 hour MA comes in at 168.02.  Also, the 61.8% retracement level of the move down from July 14th comes in at 168.00 (see chart above).  Expect sellers against this KEY LEVEL.

The pair is above the 50% Retracement of the move down from the July 14th high.  That level comes in at 167.47 and will be watched for early support. 

Good evening,

In tonites session, the dollar has been gaining slight strength. With Tokyo not open moves have been illiquid and exaggerated. EUR and GBP bouncing off support but no real momentum.

Late in NY session the Financial media was quoting so called market experts calling for a rise in the dollar.

While the weakness in the USD has been relatively unimpeded and may be due for a technical correction. We stil have the Fed expected to cut rates by a minimun of 25bp.

While it is worth noting that commodity based inflationary pressures are evident on both sides of the Atlantic the USD could benefit from the likelihood that the Fed wil likely stay on the sidelines after this meeting and that the Europeans have been showing signs of a slowdown.

GBPJPY, USDJPY, EURJPY and AUDJPY all getting a bid.

We will see these short covering rallies from time to time as the market probes new low levels.

EURJPY breaks the 158.69 November low