The dollar fall against the Japanese yen "has established a near-term bottom at the 108.50 level," according to BK Asset Management. USD/JPY is last up 0.1% at 109.30. With U.S. non-farm payrolls expected to come in higher on Friday--up by 177,000, compared with a 148,000 increase in December, according to a WSJ poll--and with "the Fed appearing resolute to normalize monetary policy in earnest, the decline in the dollar may be coming to an end for the near term," says BK. Still, against the euro and sterling, the dollar continues to lose ground, with EUR/USD up 0.3% at 1.2452 and GBP/USD rising 0.2% to 1.4222.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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