The pick of the day is dollar-yen, basically Ms. USA dancing against Mr. Japan on the daily dance floor. Since we last talked about them, they have continued scratching the lower band of Mr. Bollinger but now they have a new barrier to fierce through: the 50% Fibonacci level. Will this level hold? Personally I entered a new long position yesterday at 100.975 and the market has been going up ever since. Long term resistance is at 105.378 and support at 96.554, but I may get out of my position a bit sooner depending on the sentiment and the fundamentals.
Speaking of which, let’s touch a bit on the market news. In the US, Jack Lew has once again been pleading for politicians to increase the debt ceiling, with his sense of urgency seemingly justified. According to the Treasury Secretary the US will hit its current limit at the end of this week and thereafter the Treasury will have to resort to some fancy accounting practices to tide them over until the end of the month. You’ll all remember what problems the debt ceiling has caused in the past and this time round could well play out in a similar way… Just what the market needs.
Stay tuned for more updates and don’t forget to check in with all points of the Invest Diva Diamond, namely the technicals, fundamental news and market sentiment, before you make a final trading decision!