Action Insight Mid-Day Report 5-18-09

Yen Reverses on Stocks Rally ... and Concern of Intervention

Yen crosses stage a very strong rebound after initial weakness today on a couple of reasons. Firstly, there was verbal intervention from Vice Finance Minister of Japan Sugimoto, who said that "excessive moves" in currencies may hurt economy.

Secondly, investors sentiments seem improved as seen in rally in European stocks.

Thirdly, most yen crosses drew support from trend line as mentioned in our prior reports. Among the pairs, commodity yen crosses are the biggest winners so far with AUD/JPY, NZD/JPY, CAD/JPY topping the top movers chart.