USD/JPY Discussion

Just hit the Friday's high at the 87........ Really fighting for those pips on the up side......

We'll see if it breaks 107 though. Its been bouncing off that resistance for a few days now. Might be a good scalping opp if I were a scalper .

MrPipMaster is more than like one of the best in the market as it comes for scalping...... I'm pretty good myself but I believe he is better than I am......

UAE ponders end of peg to dollar

By James Drummond in Abu Dhabi

Published: July 7 2008 03:00 | Last updated: July 7 2008 03:00

Abu Dhabi's department of planning and economy has re-ignited speculation the United Arab Emirates may break its fixed peg to the US dollar. The UAE is one of the world's main holders of dollar-denominated assets.

The report published at the weekend said the UAE floated the idea of tracking a basket of currencies in advance of formation of a currency union in the six-member Gulf Co-operation Council.

The department is answerable to the emirate of Abu Dhabi and is not a federal policy-making body. However it reflects official thinking in the most wealthy of the seven statelets that comprise the UAE. Inflation in the UAE runs at 11 per cent and is higher elsewhere in the Gulf.

The dollar peg means Gulf central bankers have to match the interest rate moves of the US Federal Reserve and thus have only limited tools with which to curb inflation.

"Although the UAE has officially made it clear that it would not de-peg its currency from the flagging US dollar, international financial institutions as well as experts and analysts have maintained that the UAE would do well [to float] its currency as a means [of] curbing inflation," the report said.

Qatar and the UAE are usually thought to be the most likely states to quit the dollar peg. Speculation mounted last year the UAE was about to break with the dollar, after ambiguous comments by Sultan Bin Nasser Al Suwaidi, central bank governor, but the authorities acted to deny it.

Of the GCC states, only Kuwait manages a currency basket dominated by the dollar but it can decide its own interest rate policy. Inflation in Kuwait is lower than in the other GCC states.

"GCC states need to peg against a basket of world currencies, taking into account the latest trading patterns, which tend to be bent toward the eurozone and Asia," the Abu Dhabi department said.

"That the Gulf states continued to have fixed dollar exchange rates even as the dollar continues to decline, causes greater harm to the Gulf countries," it said.

Analysts did not believe a change in the UAE's currency administration was imminent, although the report clearly reflected a strand of thinking. Simon Williams, economist at HSBC in Dubai, said the report showed a preference for joint action over unilateral action.

"The case for reform of the GCC currency regimes is strong but we don't anticipate change taking place in the near term. The report may indicate that debate is ongoing but I don't take it as a sign that change is nigh," Mr Williams said.

The UAE yesterday said that it was forgiving up to $7bn (€4.5bn, £3.5bn) in principal and arrears of Iraqi debt to help Baghdad with reconstruction. The ann-ouncement coincided with a visit to Abu Dhabi by Nouri al-Maliki, Iraqi prime minister, and with confirmation the UAE will send an ambassador to Baghdad, two years after one of its diplomats was kidnapped there.


http://www.ft.com/cms/s/0/6a898c1c-4...nclick_check=1

Anyone for the 108.......

As of today the bottom of the trend line is at the 107.35 and tomorrow after 17:00 ET will be at the 107.50 and looks as though it is turning again for the upside...... Any disagreements??????

Sure....i grabbed another 15 pips on the move up....still loving the down signal on the GBP/USD.....looking for another 50 pips or so and close for my 200 pip limit....i usually don't trade this pair....but orignally entered on a scalp...so lets see if we can break my daily record today....

smiling - go for it.......

I was just looking at the pound and on the daily it has a target of 9600 or even lower....... We will know by the end of the week.

Got my 20pips at 107.07

Let's try to go for more..

That would be really nice i need to to get to the 9730 area for the 200 pips...
entered at the 9930 area last week...worth paying the interest here...

Hey Jason - good job...... and good seeing you again also.

Been having pretty good runs recently.. Tks to u.
Still keeping it going...

I like your quote........ Especially on the retire early........

USD/JPY seems to be heading toward 200SMA on the daily chart again. 200SMA is around 107.70 this time. The pair was rejected by 200SMA several times for the past weeks. Let's see if it will break it or will be rejected this time, too. That'll be interesting to watch.

I'm glad to hear that......

I agree.......

It bust the R3 and with this pair it can go even higher with no resistance except for the long term lines.......

Hello Jason....i love scalping the mess out of the USD/JPY....i moved off the 2m and was looking at another chart came back and close my 20 pips at 107.22 nice move...thats the kind of pips i like....

Weekly R1 is at the 48........ and the monthy R1 is at the 23 in which it already busted that one........