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The Yen was sold BIG TIME and the EURO was purchased.
This was NOT about fundamentals, this was about INTERVENTION. This was planned. The Technicals helped a little but only to make you aware as these great charts by our friend show the various support and resistance points along the way up or back down.
In normal times it does not go through support and resistance in WARP time.
Then the EVENT that nobody could predict or understand until it was clear what was happening. Then at 6:30 AM, Citibank announces an incredible writeoff much better than the rumor that had been circulating for days that it might be twice what it was. The relief that it was not worse caused the normal insanity in human thinking terms and the Dow Futures took off.
In the case of all those that do technicals including our friend the fundamental fact that is never in their charts is what the Dow will do that day since the USD/JPY is almost 100% correlated to the Dow's ups and downs.
When the market opened the rest of the ride started and all that was occuring was tremendous amounts of buying of Euro's and selling of the Yen. At the same time there was a massive selling of Gold as the US Dollar want up almost 100 PIPS from 5:00 AM until nearly 3:00 PM when it started to back off.
The lessons for ALL, Whether Technical traders or Fundamental traders or bhoth is that at times like this there needs to be the proper risk management tools in place. I will talk about that at another time. I took some serious losses and I need now to review what might happen next to this pair. I have a technical chart that I will try to locate that shows the pattern of the USD/JPY and EUR/JPY since March 27, 2008. It is fascinating to look at.
Later...Have a Great Weekend.
Bruce
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