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The pair is still testing Friday’s highs early in Asia; we could see further strength in USD/JPY today heading into tomorrow’s BoJ monetary policy meeting minutes.
After a sharp drop last week, traders will be eyeing Friday’s low at 0.914 to see if the pair can arrest its slide. Momentum traders could be looking to sell it on a break here.
FMG will be an interesting one to watch today after a downgrade to neutral (from buy) by Citi. The stock is in a firm uptrend and I feel any dips into $5.50 are a good opportunity to accumulate.
The precious metal finally stabilised on Friday and arrested its slide around 1245. US dollar moves will continue to drive sentiment for gold, and with pending home sales data due out later today, we could see some moves in the greenback and in turn the precious metal.