In the news: Rebound Wednesday is what we are calling the markets today. Stocks in the U.S. markets moved higher covering their losses from yesterday's session. This bounce was due to strength in technology stocks and financials. Oil also spiked higher today, moving above $43 per barrel as signs that OPEC is following through with production cuts. Dow closes up 279.01 points (it's best day since December 16, 2008). Overnight the European markets closed the day flat.
In focus today:
USD/JPY: Today the Dollar Yen decided to retest new lows not seen since December 17, 2008 (shown on this 4 hour chart). Most of the Yen strength came from the Sterling Yen cross sell off, which is base on speculation the banking system in the U.K may have to be nationalized. The Yen at these current levels is really hurting the Japanese exports which plunged a record 35% in the month of December from a year ago. This brings in the possibility that the BOJ will intervene as a last resource. The last time the BOJ intervened in the currency markets was in 2003 selling a record 20.4 trillion Yen. Currently the 87.08/15 level has provided great support for the USD/JPY. The trend will continue lower for the next few days of trading unless the BOJ shows up. The 89.96 (38.2% Fibonacci retracement) level should provide some resistance and from there 90.50 level.