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Yen Update!
By Mike Conlon | November 27, 2009
Just before I left on Wednesday for Thanksgiving, I noted on blog really quickly that the Japanese yen (JPY) was at a 10-year high to the US dollar. Well that was just the start of it. Let’s take a look at Wednesday’s chart of USD/JPY and a 5-minute chart of this pair when the Dubai news came out. (click charts to enlarge)
As you can see from the charts, this pair made a tremendous move in a matter of minutes! Yen strength occurs because of its pecking order in the risk-aversion trade. This weekend will be very important to find out if there is any contagion of this problem in Dubai– meaning if this is an isolated incident or is it going to affect the banks and world markets in general.
Stay tuned!
Tags: bank, blog, charts, dollar, Dubai, forex, forextrading, Il, Japan, jpy, market, Mike Conlon, minutes, pair, RSI, trade, USD, Yen
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