Archived IMT (2009.11.20)

ANOTHER FRIDAY, ANOTHER YEN DAY. Business TV may be busy talking about the rebounding US dollar, but once again, the yen remains the best performer during these days of risk-aversion (falling stocks) just as was the case in the last 3 Fridays. The case for continued yen strength remains based on the currencys low yielding stature, the central banks looming end of corporate bond purchases (unlike FOMC whose desire to withdraw liquidity is strictly in talk rather action) and the US Treasurys escalating borrowing, which limits rebounds in the USD and renders JPY lustre against other FX. WATCH THE 1080 level in the S&P500, which will likely be tested next week. Today, we expect a probe of 1087. Keep an eye on the 1.4820 support in EURUSD, while any GBPUSD recovery is seen capped at 1.6580. See previous IMTs for other targets.