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USD JPY Confirms Weekly Reversal Bottom

Posted by Forexhound on November 13th, 2010

This week the USD JPY confirmed last week’s closing price reversal bottom with a follow-through rally to the upside. The primary catalyst behind the Dollar/Yen rally was the interest rate differential. Treasury Bond yields rose this past week while Japanese rates held steady. The increased spread helped draw investors into the Dollar.

Overnight the Euro confirmed Monday’s closing price reversal top after it came under selling pressure following a report in The Wall Street Journal that said the U.S. Federal Reserve’s new quantitative-easing program will be smaller than some investors had expected.

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