Dollar Yen - Weekly Candle Chart 9th February 2009

Dollar Yen - Weekly Candle Chart 9th February 2009

Last week’s candle for the dollar yen, has at last provided some respite from the remorseless sideways movement of the last few weeks with a sharp move up on Thursday, leaving us with a wide spread up bar on the week. The closing price on Friday penetrated the 9 week moving average, but not the 14 week,  so proving little in the way of a confirmed direction for the longer term as we need to see clear evidence that this is a sustained move and not simply a temporary reversal. There is little fundamental news for the Japanese Yen this week and like many other currencies the pair will be dominated by any news from the G7 meeting taking place in Rome at the end of the week.  The US dollar fundamentals are explained on the euro to dollar site.

My suggestion for your longer term trades on the dollar yen would be to await and see – one swallow does not make a summer! My own view is that we are likely to see a retest of the $93 region with a possible move back up to $95 and above in the next few weeks, but I personally I am waiting on the sidelines at the moment for a much clearer signal to appear showing bullish intent, before opening a long term position. At the moment we simply have more sideways movement on the chart, and until this changes and we have a confirmed trend in place, then I am taking a wait and see approach.

The short term outlook is sideways, the medium to long term is bullish.