"Sandy" Has Frozen Trades In The USA - 29.10.2012

News of the approaching "Sandy" hurricane that could be the biggest storm in U.S. history, according to some estimates, dominates the financial media headlines. It is expected that Sandy will reach the US east cost on Tuesday morning. In this regard, American Stock Exchange will be closed on Monday, and probably Tuesday, that will most likely reduce trading activity in other markets. Currency traders are focused on the Bank of Japan tomorrow meeting where the QE extension by 10 trillion yen is expected to be announced. Calendars do not provide any exact time. The decision is most likely to be expected 3:00-5:00(CET). After nearly four weeks of growth in USD / JPY there has been a correction occurred. Following Friday results, quotes fell to 0.83%, creating the Bearish Engulfing candle reversal model. Current support is located at 79.55-60. In case of its breakthrough, there can be the next level met at 79.15. It is worthy to pay attention to EUR/USD testing important local resistance at 1.2940.

USD/JPY, daily chart