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USD/JPY Could be in Overbought Territory

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USD/JPY Could be in Overbought Territory

Postby saidnawrass » Sat Nov 24, 2012 11:42 am

The USD/JPY moved to a seven month high overnight as the Bank of Japan began their two day meeting. Most analysts expect the BOJ to take no action at this meeting, but move ahead with further easing after the December election. The leader of the Liberal Democratic Party (LDP), Shinzo Abe has stated he will choose someone that is more in favor on inflation targets as the next Bank of Japan Governor if he is elected in December. Last week, Prime Minister Noda dissolved the lower house of the Japanese parliament and set elections for December. The lastest pols show that Noda’s party will be defeated in the election.
USD/JPY reached a high of 81.58, but technical indicators show the RSI in JPY to be near the 70 level, which is considered an overbought situation, suggesting a reversal is in store for the currency pair. At the present time the USD/JPY is trading in the 81.25 area. According to the Commodity Futures Trading Commission reports, traders have decreased their short JPY positions in the week ended November 13. The number of contracts was 30,447 as compared with 40,104 for the week before. The contracts report happened before Prime Minister Noda dissolved the lower house. I would expect to see this number increase this week. more information visit page web
http://traderforx.blogspot.com/2012/11/usdjpy-could-be-in-overbought-territory.html
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Re: USD/JPY Could be in Overbought Territory

Postby Shawnmichal » Sat Nov 24, 2012 12:21 pm

"USD/JPY reached a high of 81.58, but technical indicators show the RSI in JPY to be near the 70 level". I was expecting it since last some weeks. My forecast is that USD will be more stronger in Japan compare to Japaneses Yen.
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