Updating time : 28/10/2008 23:46 GMT

USD/JPY - 98.28...The dlr rallied sharply y'day (posting its largest rise
vs theyen since 1974) on the back of the broad-based strg rebound in global
stock markets n also on speculation that Japan may need to cut interest rates.
Investors were aggressively selling the yen on increased risk appetite ahead of
an anticipated rate cut by the Fed later today (18:15GMT).
Y'day's strg rise confirms correction of MT downtrend has taken place
(the upmove fm last Friday's low at 90.87 has already retraced over 38.2% r of
110.67-90.87 at 98.43) n abv 99.79 (this morning's high in Australia) wud extend
gain to 100.00 n 100.40/50 but as hourly oscillators are likely to be in o/bot
territory on such move, 100.77/87 (50% r of 110.67-90.87 n res) wud cap upside n
risk has increased for a retreat to occur later today (readers shud watch out
for any 'buy on rumour, sell on fact moves' after the rate announcement).
Therefore, buying dlr on dips for day trade is favoured n only below
97.01 (50% r of 94.23-99.79) wud signal a temporary top has been formed instead,
risk stronger pullback twds 96.20 (prev. res)...

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