USDJPY is facing the resistance of the upper border of the price channel on 4-hour chart. As long as the channel resistance holds, the rise from 80.31 could be treated as consolidation of the downtrend from 84.17, and another fall is still possible after consolidation. However, a clear break above the channel resistance will indicate that the fall from 84.17 had completed at 80.31 already, then the following upward movement could bring price to 83.00 zone.
I came across some research on the subject of worry. Here’s how it was presented:
Things People Worry About:
Of the legitimate worries, half are problems beyond our personal ability to solve. That leaves 4% in the realm of worries people can do something about.
I thought about our gigantic national debt and weak economy. These seem to fit into both subcategories of “real” worries. You can’t do much as an individual to solve the nation’s debt and economic problems, yet you can prepare for a worsening economic downtrend.
Do we see evidence for an economic turn for the worse?
Well, consider that the evidence is so overwhelming that it took 456 pages of the second edition of Robert Prechter’s book, Conquer the Crash, to cover it. And since that book published, Prechter has consistently devoted his monthly Elliott Wave Theorist to the facts and evidence behind his forecast.
Here’s a chart from the book that was updated by Elliott Wave International in March 2012:
The downturn from 2008 is critically important, as it shows that after an almost unbroken 60-year climb, the contraction is underway. It surely has much further to go, because it is still a third higher than it was at the outset of the last debt deflation in 1929.
— The Elliott Wave Financial Forecast, March 2012
The rating agencies are well aware of what the above chart means. You probably know that Standard & Poor’s downgraded U.S. debt from the nation’s long-standing triple-A to AA+. Now, another rating agency has taken their rating even lower:
Rating firm Egan-Jones cuts its credit rating on the U.S. government to “AA” from “AA+” with a negative watch, citing a lack of progress in cutting the mounting federal debt.
— CNBC.com, April 5
Robert Prechter’s bestseller, Conquer the Crash, provides practical information about what you can do to protect your finances in the coming economic implosion. And right now, Elliott Wave International is offering 8 lessons from Conquer the Crash in a free 42-page report that covers:
In every disaster, only a very few people prepare themselves beforehand. Discover the ways you can be financially prepared and safe.
Get Your FREE 8-Lesson “Conquer the Crash Collection” Now >>
This article was syndicated by Elliott Wave International and was originally published under the headline How to Handle an Economic Implosion. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
Source: ForexYard
The British Pound made solid gains over the Euro on Thursday’s trading day after rumours that the Bank of England will bring next months stimulus program to a halt,as there are indications that the nation’s economy is improving.
The sterling dropped versus the U.S dollar after reaching a 5-month high, as minutes from the recent Bank of England meeting suggested that inflation may be closer then expected.
The Pound reached its strongest level against the 17-nation Euro since August 2010 after appreciating 0.1 percent to 81.82 around 16:00 London time. Against the greenback, despite losing some ground on its recent 5-month high, the Sterling rose 0.2 percent after hitting $1,6079, the highest point since Mid-November.
According to Bloomberg Correlation Weighted Indexes, the sterling has shown the second biggest gains in the past month,coming behind to only the Japanese Yen.Figures show that the pound appreciated 1.6 in the past month whilst the Yen showed a climb of 2.9 percent. The Greenback also had positive figures for the month ,after rising 0.4 percent.
There are a number of financial reports due for release on Friday that could have an impact on the currency markets, in particular, the Euro and the British Pound. The reports include German Ifo Business Climate Index,GBP Retail Sales as well as Canadian Core CPI.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
By TraderVox.com
Tradervox (Dublin) – The Bank of Canada meeting had resolved to keep the monetary policy as it projected an exit following positive global economy. However, this week’s jobless claims from the US have indicated that the bad performance indicated last week is reflective of a trend in the economy but not a onetime event. Following the release of the US jobless claims data, the loonie fluctuated against the US dollar increasing by 0.7 percent and later declining. Canadian dollar had increased as the BOC Governor indicated that the exiting from the stimulus program was appropriate.
The jobless claims which came at 386,000 against an expectation of 367,000 forced the Canadian dollar to pare its gains losing 0.2 percent against the dollar to exchange at 99.35 cents per US dollar. The loonie had advanced against the US dollar the strongest on April 17 when it rose to 98.65 cents.
Analysts are now concerned that the current increase in the jobless claims for two weeks in a row indicates a possible trend for the US economy. The dollar fell against the yen after the report but continued to rise against the euro as appetite for riskier assets diminished in the market. For a long time, the jobless claims had been around 367,000 hence shifting to 386,000 this week and 387,000 last week might be indicative of a new trend.
Non-Farm Payrolls report was the first one to signal a change followed by the two jobless claims reports. However, the unemployment rate remained at 8.2 percent but this might change if the current trend continues.
According to Avery Shenfeld, a Chief Economist at Canadian Imperial Bank of Commerce in Toronto, the weaker jobless claims may have caused the loonie’s drop from the previous gains. He added that signs of weakness in US economy have dampened expectations of BOC increasing the interest rate.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
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News and analysis are produced throughout the day by our in-house staff.
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By TraderVox.com
Tradervox (Dublin) – Some concerned about the Bank of Japan’s stand on monetary easing policy had been raised earlier this week after some analysts pointed out that the BOJ is confusing traders on its stance. Today, Masaaki Shirakawa, the BOJ Governor set the record straight by reaffirming his commitment to the monetary easing policy.
He said in a speech in New York that he remains committed to continuing monetary easing. He also indicated that the Japanese economy had stagnated despite reports released today showing that the exports grew the fastest in a year.
In his speech, Shirakawa said that the BOJ will pursue powerful monetary easing through different measures that will include retaining interest rate at practically zero and buying financial assets until its YoY CPI inflation of 1 percent is presumed achievable. The Japanese currency had strengthened against the US dollar to post World War II record prompted the BOJ to embark on an asset purchases program to save exporters from tremendous losses they were getting.
In another report, Japan had experienced a smaller than expected trade deficit which has boosted sentiments that Japanese economy is on a recovery path. Further, the outbound shipments rose by 5.9 percent in March from a year earlier which has exceeded the market’s estimate of a 0.2 percent increase.
The statement by the BOJ Governor came after a former BOJ member indicated that the recent actions by the BOJ has been against its stance of monetary easing saying that the Bank of Japan was confusing traders. Following comments by the BOJ governor Mizuho Securities Co., SMBC Nikko Securities Inc., and Morgan Stanley MUFG Securities Co. have predicted that BOJ will expand asset purchases at its April 27 meeting. The central bank is under pressure from lawmakers to be more aggressive in countering the decade-long deflation.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
Source: ForexYard
Gold showed some strength during Thursday’s trading after falling to a week-low prior to today.
Even though the precious metal was trading well below the levels we have previously seen, investors were keen to profit from the current poor price.
The yellow metal appreciated after apparent rumours that France could be downgraded,which lead to panic in the European Markets creating renewed concern over the Euro-zone crisis.The rumours of a French downgrade was spread throughout Europe despite the fact that strategists dismiss the claims.With the first round of Presidential elections to take place soon, it seems unlikely that a downgrade would occur.
Gold prices were also given a boost by the U.S weekly jobless claims which produced better then expected results.The precious metal climbed as high as $1,654.90 after appreciating 0.5 percent to $1,647 during Thursday’s trading.
A boost in the number of unemployment benefit requests in the U.S also helped in gold trading up, as the figures reached a four-month high,leading to investors showing concern for the future of the U.S Economy.
Despite gold’s recent boost,the yellow metal has not performed as a safe-haven asset should over the past few months. There were mixed fortunes for other metals during Thursday’s trading as Copper slightly fell whilst silver showed very modest gains.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
Article by Investment U
The smart way to invest in Japan is to take the yen/dollar out of the equation. And the WisdomTree Japan Hedged Equity ETF (NYSE: DXJ) does just that.
About a decade after Japan’s bubble burst, I was having a cool San Miguel beer with a leading money manager at the Hong Kong Jockey Club.
We were discussing the rise of China and whether Japan could snap out of its slump, when my friend made a comment that stuck with me over the years.
“Carl, there’s only room for one big dog in Asia.”
It certainly seems so.
After dominating Asia for a long time, China fell apart after turning inward in the late nineteenth century and early twentieth century. Meanwhile, Japan was turning from isolation to looking outward and re-igniting its economy. This imbalance in strength led to the tragic Sino-Japanese war.
After World War II, Japan immediately began its amazing export-led industrial recovery while China again faced turmoil, turned inward and cut itself from the world under Mao’s misguided leadership.
Since at least 1990, China surged at double-digit growth rates while the Japanese economy sputtered along.
For Asia’s investment managers, beating their performance benchmark during this time was a piece of cake – just underweight Japan.
But lately, it appears money is flowing from China to Japan. It’s too early to call this a trend, but if you’re a momentum player you’ll want to follow what the big boys are doing.
In the latest survey of global money managers by Bank of America Merrill Lynch, the percentage who said they were underweight Japan shrank sharply – to just 4% in March from 23% in February.
This led to the Japanese market having its best quarter since 1988. And last month, the Nikkei, which rallied 23% since late November, closed above 10,000 for the first time since last summer.
The bear case for Japan is well known: high debt, slow growth, aging population, gaping budget deficits and dysfunctional politics. To many investors, it seems like yesterday’s story, while emerging markets look like the future.
But there are two sides to every story, and the case for keeping some Japan exposure in your portfolio is clear and compelling…
Almost exactly one year ago I wrote 13 reasons why Japan still had a bright future ahead.
Well here’s a look back at some of those reasons why ignoring Japan may be a mistake, plus a few new ones:
This is all impressive stuff, but how should you invest in Japan’s potential renaissance?
If you chose the popular iShares MSCI Japan Index Fund (NYSE: EWJ) exchange-traded fund, you’re not very happy, even though it gained approximately 8% so far in 2012.
The key reason for EWJ’s surge through the first 10 weeks of this year was a 7% decline in the value of the yen versus the dollar. This is rocket fuel to this EWJ’s export heavy holdings.
This is also double-edged sword, since a weaker yen also cuts into your dollar-based returns.
The solution? Take the yen/dollar out of the equation.
The WisdomTree Japan Hedged Equity ETF (NYSE: DXJ) does just that, which is why it gained nearly 16% this year. Figuring out an investment opportunity is important, but so is picking the best investment tool to capture it.
China’s cascading troubles may reflect a buy point close to Templeton’s principle of “maximum pessimism.” It could also signal that China’s role as Asia’s big dog is waning.
Good Investing,
Carl Delfeld
Article by Investment U
By TraderVox.com
Tradervox (Dublin) – There has been very positive reports coming from the UK this week, and the pound has found support to rise to 19-month high against the euro. Minutes from the BOE April meeting showed that Adam Posen has dropped is push for further stimulus supporting the current monetary policy which won 8-1 on the vote.
The UK 24-month yields climbed to the highest in four weeks after the BOE Minutes showed that officials are concerned about inflation as they indicated it might pose a greater problem than they had anticipated. The sterling pound advanced against the 16 most traded currencies as positive reports on jobless claims boosted its demand.
After the release of the Minutes, Neil Jones of Mizuho Corporate Bank Ltd expressed his surprise on Posen’s decision terming it as a reflection of a vision of higher inflation and better growth prospects. The minutes also showed that the inflation target will be kept at 2 percent. Bank of England Deputy Governor indicated that this is as a result of the slow pace of price gains which is less than expected for the year. In a separate report, jobless claims in the March increased by less than expected. The unemployment rate also dropped from 8.4 percent to 8.3 percent according to International Labor Organization.
The reports have pushed the pound to increase by 0.6 percent against the euro to trade at 81.91 pence per euro after it had touched 81.74 which is the strongest it has been since August 2010. The GBP climbed against the greenback by 0.6 percent to trade at $1.6023, which is the highest level it has been since April 3.
The positive sentiments and reports from the UK has pushed the currency above the 1.60 level against the dollar and analysts are projecting that this might continue to happen even through to the next week. The dollar has been weakened by bad reports from the labor market and the NFP report. However, the weakening of the Chinese economy has given the dollar some leverage as traders view it as a safe haven currency.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
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Article by Investment U
Let’s go through each step of the process. I think after a procedural analysis, you’ll see why a debate has formed concerning the fracking process.
I have a friend who’s into science fiction and the SyFy network. A few years ago he joined the cult following of Battlestar Galactica – a remake of the sci-fi show I use to watch as a kid on television in the 70s.
One of his points asserting to the show’s brilliance was the manner in which it created its own language in order to use profanity on regular cable television. Can you really censor a word that doesn’t exist?
Imagine my surprise a couple of years ago when I actually saw one of these word in a financial publication. How did they know about “frack?” Better yet, they were using it as a verb.
You can use your imagination as to what the word “frack” was substituted for in our language. However, I think it’s important that we all know the meaning and the debate regarding “fracking” in our real world.
Fracking is formally known as hydraulic fracturing. At least how it’s used in domestic oil drilling in shale rock formations. In these types of formations it’s referred to as “tight oil.” This means the oil is found within the rock itself. It’s not like the process we’ve seen on television and movies for years where there’s a big drill looking for a large reservoir of oil miles underground.
Let’s go through each step of the process. I think after a procedural analysis, you’ll see why a debate has formed concerning the fracking process:
There are two camps out there right now:
One believes the fracking process will be a huge part of the present and future of domestic oil and gas production. At the present, the U.S. oil market could be at the beginning of a boom similar to what the natural gas market is already experiencing. As a result, domestic production is now projected to rise significantly over the coming decades, reducing the relative share of imports in U.S. oil consumption.
The other camp believes that the importance of fracking is overstated, won’t drive down oil prices and comes with a steep environmental cost. The chemicals added in Step 4 of the fracking process only make up about 1% of the total mixture. Some companies actually post which ones are utilized, but most companies do not. The chemicals in the water have become a major component of environmental concerns and we have no true time frame to judge what affect they actually have on ground water.
However you view the situation, fracking will be a prominent subject over the next few years as this country looks to gain more natural resource independence. As we creep through a recovery, oil prices may be the key of if or how soon we come out this current economic environment.
Good Investing,
Jason Jenkins
Article by Investment U
By TraderVox.com
Tradervox (Dublin) – The Aussie and kiwi have come from a one week low after the Xinhua News Agency reported that reserve requirement ratio may be cut in China. The two south pacific dollars had fallen earlier due to a decrease in raw material prices reported by Standard and Poor’s GSCI Index. The New Zealand dollar dropped to a week low against the US dollar while the Aussie shed 0.3 percent.
After the report by S&P the New Zealand dollar depreciated by 0.6 percent against the greenback to trade at 81.59 US cents; it had earlier touched its weakest since April 11 when it traded at 81.46 US cents during the US session. The kiwi also dropped against the yen by 0.1 percent to trade at 66.30. The kiwi had remained low on speculation that the Reserve Bank of New Zealand would refrain from increasing the interest rates. The Australian dollar dropped by 0.3 percent against the US dollar to trade at $1.0359 and dropped by 0.2 percent against the yen to exchange at 84.17.
These declines has however been overturned as Xinhua News Agency indicated that reserve requirement ratio in China would be reviewed downwards. China is the major trading partner for both south pacific nations and good news from China strengthens both kiwi and Aussie. The two rose against the yen as reports from Japan showed that it registered a trade deficit in March. However, the kiwi rise was limited by reports showing that consumer prices rose by less than what was expected.
The New Zealand dollar advanced against the dollar by 0.2 percent to trade at 81.78 US cents from an earlier drop to 81.46 cents. It rose by 0.5 percent against the Yen to trade at 66.62 yen. The Australian dollar rose by 0.3 percent against the US dollar to exchange at $1.0388; it advanced by 0.4 percent against the yen to trade at 84.47.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
