... and what a lame session it is. Extremely lackluster; it seems many japanese are looking forward to the long weekend into monday, and will take no bets. Who can blame them, really ?
Why should they take any chances ...
[02:04 Japan FinMin Tanigaki - U.S. Should Strive To Cut Deficits] Tokyo, Sep 17. Over Reuters. The FinMin refers specifically to the U.S. current account imbalance.
Well, I think the chance of that is similar to the chances of (a) Snow(ball) in hell.
edit: no bets from Thomson either --
[03:41 GMT Sydney September 17th] Deficit funding fears were smoothed by the Treasury TIC data overnight, but the CPI and the Philly Fed data came in weaker than expected, contradicting the Empire State data of the previous session and the USD was sold off as U.S. yields slipped lower. The EUR/USD touched a high of 1.2203 overnight and opened in Asia at 1.2182. The Asian market in the EUR/USD has been characterized by tight ranges and low interest this week and today was no exception. The range has been 1.2181/97 in thin markets, lead by USD/JPY. The pairing has been without a trend in recent weeks, as it trades in a choppy fashion, with slowly decreasing ranges in a broad triangular formation. Sentiment in the market is that the range trading is set to continue and volatility has been sold over the week, with no touch options in demand. The net effect of this is selling interest between 1.2275/1.2300 and buyers at 1.2000/25. These structures tend to be self fulfilling at first, but the usual outcome is that when there is a range break, it extends. We have no bias at this stage, but look for a break next week.
[01:51 GMT Sep 17th] USD/JPY continues to go nowhere. Early action saw a blip back up to 109.70 on expected Japanese importer settlement demand ahead of the weekend and national holiday on Monday. Exporters were seen to have been equally active however, and USD/JPY traded off well ahead of the fix. It continued lower, trading below the overnight low of 109.48 and tripping some light stop in the 40-45 area and to a marginally lower 109.35/40. More light stops are eyed below 109.30 and 109.20 but bids are likely to be stiff below to 109.00. More Japanese importer interest is eyed there and option players are likely to be aggressive in defending an option trigger there. Option triggers have been noted at 109.00, 108.90, 108.80 and 108.50. Upside resistance is seen stiff at 110.00-10, if not ahead. Japanese exporters are tipped to leaving offers there while Tokyo is on holiday, trailing up to another large batch at 110.40-50 and even higher. Some stops should be seen above 110.50 however, an option barrier. EUR/JPY, for its part, looks to consolidate on 133 now that a bottom looks to be in place at 133.00-10, also 61.8% Fibo retracement of 131.80-135.10.
<pre>| [ EUR/USD TRADING PAGE ]
| [SPOT] |[TECHNICAL SIGNIFICANCE] |[RECOMMENDATION] | [POSITION]
: 1.2325(M) |daily high Aug 23 |flat on a failure | [FLAT at]
: 1.2310(S) |high Sep 10, t/l |buy a break above | [1.2175]
: 1.2260(M) |failure high Sept 15 |sell a failure |
: 1.2225(M) |congestion resistance |sell a failure |Open|16/09/04
[1.2188] 05:00 GMT FRI 17 SEP : | TIME!17 10|
: 1.2120(M) |daily low Sep 16 |expect stalling | |
: 1.2080(M) |Fibo tgt fm 1.2310-1.2220 |cover on a bounce |TGT |
: 1.2030(M) |pullback low Sept 8 |cover on a bounce |Stop|
: 1.1990(M) |daily low Aug 30 |take profit, sell break |
============|==========================|=========================|=============</pre>
EUR/USD continued trading within the 1.2000/1.2300 range overnight. Price action has been erratic the last 24 hours without testing either side of the range, more consolidation is likely. Intraday traders can sell rallies at 1.2220/30 with stops at 1.2265 for re test of overnight low at 1.2125. We will stand aside for break 1.2000/1.2300.
