USD/JPY has reached the 77.04 low, hitting the 19 weeks low. As the currency pair is getting closer and closer to the 76.25 low (March 19th, 2011), the BOJ has stepped up the speculations of a “solo intervention” to weaken the Yen. Don’t expect the U.S or the EU to coordinate with the BOJ an “international” intervention, since they are facing their own economic dilemmas.

The U.S. Dollar suffered huge losses against most major currencies following overnight news regarding a strengthening global economy and weaker U.S. business conditions in July. Fed Chairman Bernanke added to the bearishness by painting a gloomier forecast for the economy.

An improved outlook for earnings helped boost U.S. equity futures following sluggish overnight session. U.S. stock index futures turned higher shortly before the opening after trading lower overnight because of fear about a slow down in the global economy.

The U.S. Dollar is trading higher against most currency markets this morning ahead of the opening in New York. Although the Greenback closed lower on Tuesday, it started to regain earlier losses about mid-session on concerns about a slow down in global growth, European bank stress tests and short-term oversold conditions.