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Forex Alerts 10/1/2008

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Alert - 09:50 (CET) - UsdJpy



The UsdJpy is trading at 106.25, ranging from 105.69 to 106.53. The current price is over yesterday's close at 106.11. Checking the hourly graphics, the 20- and 200-day Exponential Mobile Averages (EMA) are over the 50-day EMA.

The traders are watching the resistances at 110.08 (January 10th high), 111.92 (January 2nd high) and 113.57 (December 27th 2007 high). As the supports at 108.61 (February 14th high) was broken, the traders are also keeping an eye on the next at 104.36 (May 2nd low) and 103.00 (key).

Right now, the major is rebounding from Monday's low at 103.52 yen. Today, the US Congress will vote, again, the financial sector bailout plan, presented by the US Treasure. This way, the UsdJpy market has recovered, for a while, the appetite for the carry trade, confident that the legislators will aprove the bailout plan soon.

Meanwhile, the 60-minute Relative Strenght Index (RSI) is at 61 points, rebounding from the overbought area. The volatility per hour is 130 pips. Checking the graphics again, we see that the current price is over the 61.80% (105.58) and under the 50.00% (106.5) Fibonacci retracement lines.





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