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USDJPY – Dollar / Yen Explodes higher as uptrend continues
The USDJPY moved aggressively higher today and hit its highest level since December 31st 2007 after the Bank of Japan shocked markets with an aggressive expansion of its economic stimulus program, adding fuel to the already ‘hot’ bullish trend in this market. We can see anyone who got long this uptrend from either the 1 hour pin bar buy signal that we discussed in our October 15th commentary, the pin bar from our October 21st members trade setups newsletter or the inside bar setup from earlier this week, would have been handsomely rewarded having held the trade through today. It’s obvious the trend has been up and is still up, so any retraces back to the 8 / 21 day EMA support layer or any horizontal support levels should be watched for opportunities to rejoin the uptrend.
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In the currency markets today, the Japanese yen got destroyed by the U.S. dollar and other major currencies after the Bank of Japan surprised financial markets with an aggressive expansion of its monetary stimulus plan.
The greenback moved up as much as 3 percent higher versus the yen, to 112.47 yen, its highest level since Dec. 31 2007, it was last up about 2.77 percent at 112.22 yen.
The euro fell to a 26-month low against the greenback on Friday, to $1.2484, before ending the day at $1.2533, down 0.62 percent on the day and 1.07 percent for the week.
The U.S. dollar index rose 0.86 percent today and hit a 4-year high of 87.13.
In the U.S. markets today, the Dow industrials moved up to a record high as stocks rallied following a significant ramp-up of stimulus by the Bank of Japan, which came just days after the Federal Reserve ended its own economic stimulus program.
The Dow added 195.10 points or 1.13%, the 23.40 points or 1.17%, and the Nasdaq gained 62.13 points or 1.36%
Upcoming important economic announcements (New York time): 11/2/2014
8:30pm EST: Australia – Building Approvals m/m
9:45pm EST: China – HSBC Final Manufacturing PMI
5:30am EST: Britain – Manufacturing PMI
11:00am EST: United States – ISM Manufacturing PMI
1:50pm EST: Canada – BOC Gov Poloz Speaks
8:30pm EST: Australia – Retail Sales m/m
8:30pm EST: Australia – Trade Balance
11:30pm EST: Australia – Cash Rate
11:30pm EST: Australia – RBA Rate Statement