-GMT 23:50 JPY Monetary Base (y/y), (Sep) EST 0.1% PREVIOUS 0.7%
The monetary base is the “Currency Supplied by the Bank of Japan” and is defined as follows. Monetary base = Banknotes in Circulation + Coins in Circulation + Current Account Balances (Current Account Deposits in the Bank of Japan).
EURO/USD USD/JPY GBP/USD
R3 1.4310 116.45 2.0550
R2 1.4280 116.25 2.0490
R1 1.4240 116.05 2.0460
S1 1.4200 115.50 2.0400
S2 1.4165 115.25 2.0375
S3 1.4145 114.95 2.0345
-The yen fell to seven-week lows against the euro and the Australian and New Zealand dollars after global stocks rallied, encouraging carry-trade investors to borrow in Japan to buy higher-yielding assets elsewhere.
- The dollar had its biggest increase versus the euro since Aug. 30 as charts of the currencies’ moves suggested the euro is due to fall from an all-time high. Europe’s currency reached a record for an eighth straight day.
-The dollar pared gains versus the euro after the Institute for Supply Management said manufacturing in the U.S. grew in September at the slowest pace in six months, raising concern the housing slump was hobbling other parts of the U.S. economy. The Tempe, Arizona-based ISM’s index of factory activity fell to 52 from 52.9 in August.
E) TRADING TIPS
Traders should consider the term “continuation pattern” with restraint. A valid breakout breakout on the “wrong” side will turn the formation into a reversal pattern.