Saturday, September 20, 2014

Action Insight Weekly Report 9-20-14

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Action Insight Weekly Report Markets Snapshot

Yen and Aussie Sharply Lower after an Eventful Week

Sterling was among the biggest winners last week as the important risk was finally cleared. Scotland rejected independence in the highly anticipated referendum. Nonetheless, buying in the pound was exhausted after the referendum and it pared back much of the gains against dollar and yen towards the end of the week. Canadian was surprisingly the biggest winner last week, as lifted by strong core inflation. Dollar was the first biggest winner after the mildly more hawkish than expected FOMC statement. On the other hand, yen extended recent decline together with record high in US equities. Some acceleration was seen in the middle of of week with yen's selloff. While yen pared back some losses before close, it's still the weakest major currency last week. Yen was closely followed by Aussie and then Euro.

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Featured Technical Report

USD/JPY Weekly Outlook

USD/JPY surged to as high as 109.45 last week as recent rally accelerated. Initial bias remains on the downside this week for 100% projection of 96.56 to 105.43 from 101.08 at 109.95 next. Break there will pave the way to long term fibonacci level at 111.62. On the downside, break of 107.39 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.

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The Week in Review and Outlook

 

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