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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (23279)	8/18/1999 2:04:00 PM
From: Les H	Read Replies (2) \| Respond to of 99985

DOLLAR COLLAPSES VS YEN; SUPPORT NOT SEEN UNTIL Y111.25 NEW YORK (MktNews) - The dollar collapsed vs. the yen early Tuesday as heavy selling by a variety of names triggered large stop-loss sell orders on the break of Y112.70, traders said. Most orders on the downside were cleared out and significant technical support does not come in until Y111.25, said a trader at a U.S. money center bank. "This thing can go quite a ways still," he said. Offers from Japanese exporters are now way above the market between Y113.90 and Y114.20, said a trader at a Japanese bank in London. Very early in the session, dollar-yen spiked up to Y113.75 from opening levels around Y113.30 on small dollar purchases from a U.S. money center bank, traders said. The severity of the move caused traders to speculate intervention was involved. Traders said dollar-yen started moving lower when it became apparent there was no intervention. A variety of U.S. corporate names sold good amounts of dollar-yen as it came back down to opening levels, said a trader at a U.S. money center bank. The slide continued as a Swiss bank triggered large stop-loss sell orders around Y112.70-80 and U.S. banks joined in the selling as the pair breached Y112.50, said a trader at a Japanese bank in New York. Dollar-yen initially stabilized around Y112.15 before further selling prompted a move below Y112.00, traders said. Overnight, reported comments by Japanese senior LDP member Ichizo Ohara that stopping the yen's rise artificially was impossible precipitated the dollar sell-off, traders said. Euro-dollar rose slightly in sympathy with yen gains, traders said. Euro-dollar was testing session highs around $1.0550. Good size offers remain at $1.0550 and $1.0560 and key resistance is at $1.0570, traders said. Euro-dollar is supported by German bank bids between $1.0500 and $1.0510 which have led some players to postulate about European central bank bids at the level, traders said. Large stop-loss sell orders are layered between $1.0475 and $1.0440 just below technical support at $1.0480, said a trader at a U.S. bank in London.