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What I Am Watching Today – Yen, Loonie, DAX and Copper: Key Levels to Watch in Thursday Trading

By: 
Christopher Lewis

USD/JPY and USD/CAD present potential buying setups, the DAX tests 25,600 resistance, and copper risks deeper losses if $6.40 support fails.

USD/JPY

Daily USD/JPY chart showing prices declining below both moving averages toward support at 156.50.
USD/JPY retreats to 157.17, trading below the 157.75 and 158.07 moving averages, with support near 156.50.

The U.S. dollar has fallen significantly against the Japanese yen during the early part of the Thursday session as traders are freaking out about the idea that the Americans are pulling diplomats out of Saudi Arabia in preparation for yet another attack against the Iranians. Safe-haven flows into the yen make a little bit of sense, but ultimately, over the longer term, the carry trade still works out in favor of the United States.