USD/JPY (current price: 111.28)
We may conclude that the pair was the most volatile among the majors following the Japanese earthquake. The Dollar got close to the 110 level in early trading, before rebounding strongly in the afternoon. The U.S. Richmond Manufacturing Index beat analyst estimates with a reading of +4. U.S. Existing Home Sales also came in well above the consensus estimate, as the U.S. housing market continues to perform well. The positive reports still favor a rate hike by the Federal Reserve in December.
Our assessment: The pair is trading near its six-month highs this morning. The long-term trend looks more and more positive following the 10% rally since the election.
