Yen retreats as stocks rebound

Tuesday’s trading began with a considerable correction of the recent Yen move against other currencies.
This was moderately due to high gains in stock markets around Asia.  Since last September, the correlation between the NIKKEI 225 ( the Japanese main stock index) and the USDJPY has been  stronger than usual. This fact creates some interesting opportunities for Forex day traders -

I already heard of  a few professional traders who wake up in the middle of the night in order to trade the USDJPY in the direction of the NIKIEI on the Tokyo session ( the Tokyo session starts around 22:00 GMT). Others use the general global  stock market trend of each day to buy or sell Yen based pairs in a pre set support&resistance levels. All creative ideas in a time of financial turmoil.

Talks  of possible  Japanese  intervention in the Forex market ( by selling its own currency) have also contributed for today’s correction.
Although , for now it is believed that the Japanese government will not intervene  before a more critical level  where USDJPY is trading  under 90, still rumors can direct the market just as well as strong hard facts can, just another  important truth that every  trader  should acknowledge.

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