BoJ: The exchange rate is meaningless as trade is most vital
Does the FED know when to raise or lower Interest rates. Does the FED know how many points to raises and drops. Does the FED know the duration of raises and drops. Does the FED take into account the ramifications to the world economy. Does the FED really look at data and are actually data dependent.
The answer to Fed questions is they don't even have a slight speculation to any questions. The evidence and data clearly reveals the FED has no clue.
EUR/USD December: 1.0899, 1.0891, 1.1061, 1.1159, 1.1275, 1.1522. Range: 1.1138 to 1.0694 or 444 pips, 148 pips per month.
Today: 1.0840, 1.0905, 1.1056, 1.1134, 1.1253, 1.1496.
EUR/USD Vs XAU/USD past 5 week = EUR/USD 70 pips Vs XAU/USD 63.84, EUR/USD 151 Vs XAU/USD 115.75, EUR/USD 91 Vs XAU/USD 38.45, EUR/USD 140 Vs XAU/USD 76.85, EUR/USD 74 Vs 36.96.
EUR/USD trades under 2 X XAU/USD. View daily XAU/USD trades as 10.99 and 21.98 points Vs EUR/USD at 27 pips. XAU/USD will always underperform EUR/USD.
GBP/CAD last week: vital support 1.7119. Lows 1.7121 then bounced 33 pips 8 hours later to 1.7154. EUR/CAD big support 1.4676, lows 1.4671.
GBP/CAD support next week 1.7104, next week targets 1.7197 and 1.7220. EUR/CAD Vital support 1.4670, next week targets 1.4713 and 1.4724.
GBP/AUD last week support 1.9310, lows 1.9277. Above 1.9310, highs traded 1.9415. EUR/AUD support 1.6554, lows 1.6534. Above 1.6554, highs 1.6620.
GBP/AUD next week shorts target 1.9343 and 1.9323. Below 1.9303 then 1.9200's. EUR/AUD next week shorts target 1.6575 and 1.6567. Below 1.6556 targets 1.6400's.
EUR/USD last week 1.0895 overbought. Highs 1.0863. Next week longs targets break above 1.0839 then 1.0869. EUR/USD nottoms at 1.0764 and 1.0758.
EUR/USD trades deeply oversold at 1.0770's. EUR cross pairs trades massive overbought.
XAU/USD trades oversold with EUR/USD. Watch next week EUR/USD 1.0839 for shorts and longs to XAU/USD.
GBP/USD trades massive oversold. Longs must break 1.2637 and 1.2655 to target 1.2705 and 1.2722. Bottom sat 1.2497 and 1.2484.
AUD/USD 0.6547 and NZD/USD 0.6073 for much higher.
USD/JPY Range 153.32, 152.94, 152.07, 151.83, 151.63, 151.02, 150.76, 149.90.
BoJ
The BOJ won't intervene as no purpose exists to intervene. For the BOJ, the exchange rate is meaningless as trade is most vital.
USD/JPY is driven by rising Current account and higher interest rates. Interest rates rose 17 points. Current Account traded higher by 44 billion JPY, 63 billion the previous day.
Yesterday's threat to intervention was a fat lie and as usual, the market people took it hook, line and sinker. These people are beyond dumb. They show a higher degree of stupidity.
USD/JPY at 151.45 trades massive overbought and targets 150.76 then 149.99 then 149.90.
USD/JPY is held higher by 149.25 and 143.52.
GBP/JPY targets 191.04 and 189.82, EUR/JPY 162.61 and 162.18.
GBP/NZD and EUR/NZD remains deeply overbought.
Author
Brian Twomey
Brian's Investment
Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.
