Is the “Sandy” Hurricane A New “Black Swan”? - 30.10.2012

The destructive "Sandy" hurricane advanced into the U.S. East Coast, spreading fear and horror among residents of probably the most powerful city in the world - New York. By some estimates, the electricity is off in 2.8 million houses, the air, sea and rail communications are paralyzed. There are reports of dozens of victims of nature disaster coming over. In these circumstances, the decision to stop trading in the U.S. stock markets for another day was made. No activity from American market participants is reflected in sharp decrease of trading volumes in the commodity and currency markets. However, it did not prevent speculators of taking a lead on the news from Bank of Japan. The regulator expanded the QE program by 11 trillion yen ($138 billion) according to market conditions. There was a decision to put one trillion for risky assets purchasing, mainly exchange-traded funds (ETF). As a result, USD/JPY sharply fell down below 200-daily average. In yesterday overview we made an accent on a reversal pattern on the chart and specified a probable target level at 79.15. As it is seen, the pair moves in a pointed direction.

USD/JPY, 10-minutes chart