The USD-JPY has recently found some support at 96.5Yen, though I still believe the USD is going weaker. I was actually surprised by how easily the 100 yen level was broken. Maybe it was just a reaction to the Bear Stearns failure, but I think the market is going to need more convincing that other financial institutions are not going to fail.There might also be some market trepidation with the US presidency up for grabs. Looking at the chart above its apparent that the US dollar has been stronger over the last 5 days. I think its fortunes will be far worse next week. It was always going to retest that previous Y100 level it broke so easily. So having reached Y100, I think it will be fall back, eventually reaching the Y85 level. If I am wrong, we will know early next week.
Andrew Sheldon www.sheldonthinks.com
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