21 January 2008 - 15:38Trading Advice 1/21/08

The Canadian dollar did attempt to rally against the greenback on Friday morning and I hope you were able to cash in. Be ready to buy yen tonight, with the stock market in a freefall and the carry trade in collapse the time is right for the yen to punch trough its first serious resistance levels. If the BOJ raises rates as I suspect they might tonight we should see GBP/JPY 200 really soon and USD/JPY at 100 before you know it. If the rate is unchanged then the yen could quite easily decline this evening as it has just tested major resistance today. So in other words there should be a lot of volatility tonight surrounding the release. If the rates are raised don’t expect a buy the rumor and sell the fact situation, expect a buy the rumor and buy the fact situation.