The Advisor Weblog

Beware of Japanese Yen
EUR/USD technical outlook
Summer time!
Majors’ sentiment for today
Starting the day
Hourly perspective for US session

Posted: 30 Jul 2010 04:26 AM PDT

I have been reading about this all the week: the FSA Japan (Financial Service Agency), has decided that all Forex brokers in Japan will be required to reduce their trading leverage to 1:50, from a 1:100 many have these days. I have no clear idea of how the yen crosses will react to this, but one thing is more than clear at least for me: No way I’m going to leave yen crosses positions open this weekend, as it will become effective on August 1st.

If you want to read more about this, check FXstreet.com CEO’s blog:

http://blogs.fxstreet.com/francesc/2010/07/22/forex-magnates-leverage-in-japan-to-decrease-to-150-consolidation-on-the-horizon/

EUR/USD technical outlook

Posted: 30 Jul 2010 03:58 AM PDT

Here is the technical outlook for the EUR/USD:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010-07-30.html

Summer time!

Posted: 30 Jul 2010 03:07 AM PDT

What are you going to do this summer? Fxstreet.com has made a survey among its guest experts to see what they will do: how they are going to trade, what they expect for the second half of 2010, and what are the books to read. You can see it here:

http://www.fxstreet.com/education/trading-strategies/summer-special/2010-07-29.v12.html

Majors’ sentiment for today

Posted: 30 Jul 2010 03:02 AM PDT

Here is the majors’ sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Slightly Bearish

Usd/Chf: Slightly Bullish

Usd/Jpy: Bearish

Eur/Gbp: Bearish

Eur/Jpy: Bearish

Gbp/Jpy: Bearish

Starting the day

Posted: 30 Jul 2010 02:58 AM PDT

Hi everyone and welcome back! wake up to see EUR/USD testing 1.3000. Risk aversion? no. Is Friday, and the last of the month. Dollar bearish are just taking profit to close their books before summer is fully here. And you know, once started, movement exacerbates as more position closing takes place as price falls and trigger protective stops. Besides, it’s also yes risk aversion Friday! Stocks are down in Europe while US ones are set to open slightly down also. Early data in the euro zone, was also quite negative, with German Retail Sales much worse than expected, making Euro the overall loser against greenback today.

Pound seems ready to start a bearish corrective movement, losing now the 1.5600 area, while Swiss Franc remains strong, and barely reached 1.0420 in recent run. With rumors of a SNB rate hike coming soon, Swissy fall should be more limited.

USD/JPY has forgot it can go up; the bearish trend remains intact long term talking and only if US data come extremely positive the pair could correct higher. Still we reach past December low at 86.15: under that area, there should be a good number of stops, so beware of a probable sell off.

Lots of US data today, including GDP, so here is the link for today's calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day!