The Euro has been bullish against the Swiss Franc, since the Swiss National Bank decided to ease its overvalued currency. The SNB intervention took place on Aug.3rd.2011, but we didn’t notice any progress till Aug.11th.2011 … when the currency pair surged 650+ pips. Intraday bias for the EUR/CHF remains on the upside, as long as the 1.0685 minor support line is not broken.
Japan’s Intervention Fails for the 3rd Time in a Year
The Japanese Intervention to weaken the Yen has once again failed for the 3rd time in a year. The USD/JPY hit the 76.32 low so far, pips away from the all-time low of 76.25. My previous articles mentioned that the Japan’s intervention will once again be a failure, due to investors looking for safe-haven currencies; other than the U.S dollar and Euro.
BOJ to Sell its Currency for the 3rd time in About a Year ?
BOJ (Bank of Japan) is sending warning signals to the market that if the Yen continues strengthening, it may have to intervene and weaken its currency. If the BOJ does intervene, this would be the 3rd time in about a year that we witness the Yen sell-off. It should be noted that the previous intervention have failed to sustain a long-term impact.
USD/JPY is trading at the all time low once again, and has so far reached the 76.65 low. Intraday bias remains on the downside, as long as the 82.20 minor resistance line is not broken. On the downside, the currency pair is getting very close of breaking the 4 months low of 76.25.
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.
Coordinated Intervention Sends USD JPY Sharply Higher
After a break to nearly 76.00 on Thursday, the USD JPY rallied overnight after the Group of Seven nations agreed to take steps to curb the Japanese currency’s rapid rise. The wave of coordinated intervention by the global financial powerhouse also known as the G-7 is an attempt to stabilize the Yen and bring it back to more respectable levels following the post-earthquake rally.
USD JPY is unable to break above Friday’s high of 82.45 for the moment. Intraday bias remains on the downside, as long as the 83.67 minor resistance line is not broken. On the upside, if the currency pair is able to break above 83.67 minor resistance line it will reverse the bearish momentum to bullish sentiment.