Daily Forex Commentary January 21, 2010

January 21, 2010

USD JPY Reverses Four Day Rally on Renewed Risk Aversion

The USD JPY reversed its four day rally as traders sought safety in lower yielding assets following an announcement by President Obama to curb trading at financial institutions. The
immediate reaction was to sell higher risk assets after Obama called for a reduction in the size and trading activities of financial institutions. The downside reversal in the USD JPY sets up a test
of a major 50% price at 89.30.

The U.S. Dollar …

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