USD/JPY - 108.00... Dlr opened sharply higher in N.Z. following weekend's
U.S. Treasury's announcement of taking a majority stake in the country's 2 lar-
gest mortagage companies, prompting active selling in yen as risk appetite has
returned for getting into carry trades, price then surged to 109.08 in European
morning in line with the greenback's broad-based rally n despite the retreat to
107.74 after U.S. stock markets pared some of its early gains, the pair later
rebounded in NY afternoon as the DJI ended the day 289 points higher.
Dlr's rebound fm 105.53 (Friday's low) suggests the correction fm last
month's 110.67 top has ended n as long as 107.31/35 (50% r of 105.53-109.08 n
prev. res) holds, outlook remains mildly bullish for another rise n abv 109.08
wud extend gain to 109.53 (50% proj. of 105.53-109.08 fm 107.74) n then 109.72.
Therefore, trading fm long side is favoured but profit shud be taken on
next rise as bearish divergences on hourly oscillators shud cap price well below
pivotal res at 110.29. Below 107.31/35 wud risk further weakness to 106.88/89
(sup n 61.8% r of 105.53-109.08) but minor sup at 106.24 shud hold...
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