Comments and forex-analytics from FBS Brokerage Company - page 17

 
 

Ichimoku. Weekly forecast. USD/JPY

Weekly USD/JPY

There are no doubts now that the currency intervention of G7 nations was successful. During the past week the bulls have worked hard: the pair USD/JPY added more than 250 pips.

The Ichimoku Cloud stopped ext6ending downwards. The Tenkan-sen went up. The lagging Chinkou Span has approached the price chart preparing to cross it bottom-up.

Daily USD/JPY

Tenkan-sen has gone sharply up (1), the narrow Ichimoku Cloud has turned upwards (2), while the Chinkou Span has broken up through the prices chart (3).

So, there are enough positive signals to suggest that the bulls will be leading this week as well.

 

Ichimoku. Weekly forecast. USD/CHF

Weekly USD/CHF

US dollar kept rebounding versus Swiss franc from the record minimum in the 0.8890 area. All lines of the Indicator switched to the horizontal mode (2, 3). The Kumo stopped enlarging downwards (1).

The bears are a bit used up. We don’t expect any strong moves of the market.

Daily USD/CHF

Senkou Span B keeps moving sideways, while the Senkou Span A hints at some rebound (1).

Tenkan-sen and Kijun-sen have formed the “golden cross” and the Standard line went up (2). The Lagging line has come close to the price chart (3).

The bears are beginning to lose their powers. The bulls, however, haven’t restored their powers after the decline seen so far, though the market’s risk sentiment starts improving. It’s too early to speak about the trend reversal, but the pair USD/CHF may continue correcting upwards towards the Cloud..

 

Sakakibara: USD/JPY may rise to 90 yen per dollar

Former Japanese currency policy official Eisuke Sakakibara claims that Japanese yen will keep weakening during the next few months. The economist believes that the currency may decline to 90 yen per dollar.

Sakakibara expressed concerns about foreign money leaving the country in the wake of a massive earthquake and subsequent nuclear crisis.

The policymaker is known as Mr Yen s when he was a vice minister for international affairs at the finance ministry Sakakibara was leading Japan's intervention to curb the yen's appreciation.

 
 
 
 

RBC: investors keep selling US dollar

Analysts at RBC Capital Markets claim that Friday data showed that during the week before March 29 the net short position for US dollar declined to 220 192 contracts from 231 615 the week earlier.

Never the less, the net short position for greenback is holding above 200 000 during the 8th consecutive week. The specialists note that the same was seen during the broad slump of US currency that took place in October and November of 2007, though that time the net short held no more than 7 weeks in a row.

In addition, the specialists underlined that the net long on the Australian dollar rose from 51 734 to 85 656 contracts approaching the record maximum at 88 900.

 
 
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