Forex News – 31st October 2011

JPY

Japan has finally took action and intervened in USDJPY on their own. The pair has gained
close to +400 pips in merely two hours but the strongest gain was seen in GBPJPY where
the cross has gained a stunning +524 pips.

Declines are expected to take place in USDJPY although I must highlight that the BoJ are
still watching the FX rates and one more round of massive dollar-yen buying cannot be ruled
out some time in today’s session.

Bearish engulfing has formed on hourly charts, suggesting some reversal may be under way.

USD

At times of uncertainty the USD gains against the majors. Nevertheless, this Wednesday the Fed
will reveal their monetary policy. There is a risk for further QE, which is seen will weaken
USD dramatically against a basket of currencies.

Fears from additional easing measures may help stabilize the EUR/USD in until Wednesday.

The inverted hammer no hourly chart suggests some reversal (perhaps 38.20% Fibo) is under way.

GBP/USD

Pause before Rise.

The technical configurations favour a rise on the market after an initial pause to buying levels.

The market is upside oriented today. However, before we expect an acceleration to the upside, the
market will shape an intermediate setback. We advise to play this bullish strategy when the market
approaches the initial setback level at 1.5937, and as long as the market does not go below 1.5887.
Once we see the buying level at 1.5937, we then anticipate a direct rise to 1.6147.

Buy close to 1.5937 to play a rise to 1.6147.

The invalidation level of this trade idea is at 1.5887.

AUD/USD

Bullish (direct rise). An immediate rise is expected on the market.

The market is upside oriented today. We advise to play this bullish strategy as long as the market does
not go below 1.0416, as we anticipate a direct rise to 1.0806. Buy close to 1.0496 to play a rise to
1.0806.

The invalidation level of this trade idea is at 1.0416.

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Although the data has been collected from reliable sources Bloombex does not vouch its accuracy
or precision. The quotes mentioned are for indication only, the implied conditions will only be the concluded
conditions when executing the trade.
The review is presented for instructive purposes in condition it will not be the key factor for trading.
The contents of this publication should not be construed as an express or implied promise, guarantee
Or implication by Bloombex.

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