Yen Dollar Weekly Candle Chart - 16th March 2009

Yen Dollar Weekly Candle Chart - 16th March 2009

The indecision in the market that I mentioned on Friday is clearly evident in the weekly candle chart which closed with a long legged doji midway between the 9 week and 40 week moving average.  The high of the week failed to match the previous week’s high suggesting that we are now entering a week with a bearish tone.  With little in the way of Japanese fundamental news on the economic calendar today apart from the Tertiary Industry Activity late tonight it is difficult to see where today’s price action is going to come from.

As I said several times last week in order to see any bullish trend continue we need to see a break above 99.80 and certainly beyond the 100 dollar mark and should this happen this week then we may see a resumption in the bull move.  However, my instinct at the moment is that we may see a further fall this week and my suggestion would be to attempt small short positions selling on any uptrend in the daily chart.

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