Two Developments Rattle FX Market | Forex Factory

  • Two Developments Rattle FX Market

    From marctomarket.com

    There are two main drivers in the foreign exchange market today: the much anticipated BOJ meeting and the much stronger than expected German ZEW survey. Anticipation of aggressive easing by the BOJ today has kept the yen on the defensive. However, the combination of "sell the rumor and buy the fact" activity and, arguably, some disappointment, saw dollar turned back from the JPY90 level, which it has test during the three prior sessions without a convincing break and fall to near JPY88.35 before finding a bid. Similarly the euro, which had been flirting with the JPY120 area, was sold down to almost JPY117.30 ... (full story)

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Pip Anon
Jan 22, 2013 7:29am
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How can it be buy the rumor, sell the fact? I am pretty sure Abe told the BOJ he wanted 2 percent target plus a 117B yen purchasing program. Can't trader just sell because USDJPY has seen 10-weeks of gains at 2.5 year highs?

Stop trying to explain this stuff with cliches.
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Pip Anon
Jan 22, 2013 8:43am
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Quoting Guest
Good post! Same thing happens on the e/u...anytime a selloff starts people think it's the "big correction" coming. Personally, I think it's only a technical pullback due to overbought conditions. The long term uptrend that started this past July is still in tact.
It is possible, but the "news" outlets always tried to make it more than it could be. Assets do not go up forever. Anyone here of the 2000s tech bubble?
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frx_trader
Jan 22, 2013 8:19am
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EJ is consolidating. We may not see 120 anymore this week, instead 115 is at hand. What goes up must come down.

Let's see US existing home sales.
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Trader#1D80
Jan 22, 2013 7:33am
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Quoting Pip Anon
How can it be buy the rumor, sell the fact? I am pretty sure Abe told the BOJ he wanted 2 percent target plus a 117B yen purchasing program. Can't trader just sell because USDJPY has seen 10-weeks of gains at 2.5 year highs?

Stop trying to explain this stuff with cliches.
Good post! Same thing happens on the e/u...anytime a selloff starts people think it's the "big correction" coming. Personally, I think it's only a technical pullback due to overbought conditions. The long term uptrend that started this past July is still in tact.
Reply

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