If the dollar were close to 115 yen, I'm sure a bunch of guys would definitely try to trigger stop-loss orders (to push the dollar lower). But at the current level, no one will do so.
Going into the New Year, I think players will buy back the dollar if U.S. economic indicators are good.
Market players are almost certain that the Federal Reserve will keep raising interest rates and as long as the prospect of higher U.S. rates remains intact, dollar buying will continue.
We will continue to see a yen downtrend and dollar uptrend due to the widening gap in interest rates between the two countries.
The dollar is relatively firmer against other currencies on the market due to growing expectation of further rate hikes in the United States ... following the remarks by Poole.
The dollar had been oversold on worries that damage inflicted by Katrina would be extensive and very serious.