eToro – Forex Trading Forum

[BlueinGreen]

morning all,
the markets opened yesterday evening with some excitement. the Yen which started to give back some of its gains last friday, continues to do so this morning. Notice that USDJPY was trading at 105.5 friday afternoon, and this morning already back to 108.5, the AUDJPY is back from 85 to 90.3 , completing once again a 500 pips move in less than 24 trading hours.
these are huge moves – and they come to show you how volatile the forex market can get.

if you are trading on tight stops – this is the trading environment you should stay out from – something i should have told you all sooner.

the forex news sources claim this morning that the reason for the YEN's strength right now is the U.S. government takeover of Fannie Mae and Freddie Mac this weekend (the biggest mortgage companies in U.S which lately had some serious troubles due to the credit crisis ).

but i do not buy that – i think that the market was trading in a burst of panic last friday - people bought the YEN which led to more people buying the YEN which convinced all the rest they should buy the YEN- and suddenly we are trading around 105 USDJPY with no well based reason for that !! !
the more rational traders spotted the opportunity and sold it at once around Friday noon!
this is the way the market works some time -

main events today \GMT

12:00am AUD RBA Governor Stevens Speaks

9:30am GBP PPI Input m/m : Forecast -1.2% previous -0.6%

1:30pm CAD Building Permits m/m : Forecast -1.0% Previous -5.3%

Happy Trading

[jensen7]

Thank you for the information. Your insight is very helpful.

jensen7