De Grauwe, Paul; Decupere, Danny - C.E.P.R. Discussion Papers - 1992
This paper undertakes an empirical analysis of the existence of psychological barriers in the dollar/DM and the dollar …/yen exchange markets. Psychological barriers occur when agents attach some special importance to the last trailing digits of the … price of an asset or a currency. Our empirical results indicate that psychological barriers exist and are significant in the …