25 June 2008 - 16:45Trading Advice 6/25/08

Sell the dollar. If the fed and the treasury is just trying to talk the dollar up and it sure looks like they are then the market will call their bluff.  Aside from bargain hunting there is no reason to buy the dollar and since it has already rallied of it’s March lows it is not much of a bargain. Especially now that Iran is pushing for an OPEC petrol dollar or to start accepting gold instead. I like USD/JPY short with strong resistance having already been failed at 108.60 and plenty of room between here and 105.77 which I see as the next major support level. Today’s pathetic second test of the 108.60 level didn’t even make it to the figure before quickly reversing. Forex traders are not dumb, they know the dollar is worth less than 108 yen.