Archive for dollar yen currency

Dollar vs Yen – Daily Chart Analysis 18th March 2010

Thursday, March 18th, 2010
usd vs jpy daily candle chart

USD vs JPY Daily Candle Chart - 18th March 2010

The yen to dollar currency pair continued to trade sideways yesterday in a very narrow trading range as we approach the end of the Japanese accounting period on March 31st , with the forex pair range-bound between 90 and 91 as a result. As always with any period of consolidation, this is generally followed by a sharp breakout which we can expect to see once the year end has passed, and the question of course is whether this will be to the upside or the downside!  The only technical clues we have at present are those provided by the 200 day moving average, which to date have proved to be a significant barrier to any potential test higher, as we saw in early January and again in mid-February, with the shorter term moving averages providing little in the way of guidance due to their tight bunching in the 90 price region. Any move to the  downside will of course be countered by the Bank of Japan, who will intervene should begin to approach the 85 price handle, last seen in December 2009. Short term trading in the dollar yen is very risky at the moment, and the better bet is to wait for longer term trading opportunities which should have a better chance of success, once the current sideways consolidation has broken down, and we have a new price trend to trade. The key will be the 200 day moving average above, and only a break and hold above both this, and the 93.50 price area will indicate a strong move to the upside, while any break below 88.50 will indicate a further test lower, which will of course be supported by the BOJ in due course, forcing the currency higher as a result.

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Dollar Yen Forex Analysis – 2 Nov 2009

Monday, November 2nd, 2009
Dollar Yen Daily Chart - 2nd November 2009

Dollar Yen Daily Chart - 30 Oct 2009

The yen to dollar pair ended the trading day and week in dramatic fashion with a wide spread down candle which breached all three moving averages reinforcing the bearish sentiment in the currency pair at present, and confirming with some style the hanging man candle of the start of the week. In addition the low of the day broke below the minor resistance at $90.50  and confirming that the recent rally of the last few weeks is unlikely to continue, and as a result we may now see the yen to dollar pair retest the next support region in the 88.50 price point once again. However, with the Bank of Japan sitting in the wings it will come as now great surprise to see them intervene once again and we may see a double bottom on the daily chart formed as a result in due course. In the meantime, with the bearish engulfing candle of Friday now firmly in the picture we should see the yen to dollar pair fall in the short term as a result of this technical signal.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.

Yen To Dollar – Technical Forex Analysis 14th September 2009

Monday, September 14th, 2009
Yen To Dollar - USD/JPY Weekly Candle Chart

Yen To Dollar - USD/JPY Weekly Candle Chart

A change of view today, as I thought it would be interesting to take a look at the weekly chart for the yen to dollar forex pair, which provides a different perspective following the long sideways consolidation of the last few months, which now appears to finally have come to an end. In particular it is interesting to note the series of lower highs and lower lows  which I have indicated on the chart with the blue trend lines. With the downwards trend now firmly established the only question technically is whether we will see yen to dollar break below the lower support line, or bounce higher within the trending channel, as we begin to approach the 87.00 price point where the previous move lower failed in early 2009.

Last week’s wide spread down bar added considerable momentum to the bearish picture, and with all three moving averages now weighing heavily, we should see a deeper move in the yen to dollar pair in due course. The only caveat on this forex analysis is that many forex market analysts are now suggesting that the US dollar is heavily oversold, and with the next G20 meeting due shortly, some member countries could begin to apply pressure to the US to change their rhetoric and stance on dollar, which could result in sudden reversal in the yen to dollar pair. For now however, the trend seems well established and whilst a longer term trading opportunity, selling into the trend on any upswing near the upper trend line would seem to be the favoured forex trading strategy for the medium term.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.

Yen To Dollar – Daily Forex Analysis 7th September 2009

Monday, September 7th, 2009
Yen To Dollar - USD/JPY Daily Forex Chart 7th September 2009

Yen To Dollar - USD/JPY Daily Forex Chart 7th September 2009

The yen to dollar pair squeezed higher again on Friday, following Thursday’s bullish engulfing signal, ending the session with a narrow spread up bar but with deep shadows to both the top and bottom of the candle. Much of the volatility in the forex market followed the release of the Non Farm Payroll numbers, which whilst not surprising the markets, did offer a degree of conflicting evidence as to where we were in the economic cycle, and as a result the time that the recovery will take to get into gear once again. Whilst the actual numbers were marginally better than expected the jobless percentage continues to grow, suggesting that major companies are unlikely to rush into full scale recruitment until the corner has been well and truly turned. As a result the markets oscillated back and forth on Friday following the news, with the yen and dollar counterbalancing one another as risk appetite and risk aversion ebbed and flowed following the news. The only technical point we can draw from Friday’s price action on the daily forex chart is that the high of the trading session found some resistance from the 9 day moving average, suggesting that the rally may only be a short term squeeze higher, rather than any longer term move upwards.

With no fundamental news on the economic calendar for the US due to a national holiday, and with none scheduled for Japan, today looks like being a quiet day for forex traders on the yen to dollar pair.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.

Forex Chart Analysis – Yen To Dollar 24 August 2009

Monday, August 24th, 2009

Daily Forex Analysis - Forex Chart Analysis Yen USD

Daily Forex Analysis - Forex Chart Analysis Yen USD

Forex Technical Analysis

The week ended with an interesting candle on the daily chart for the yen to dollar pair, which suggests we may see some trading opportunities on Monday or Tuesday as a result, as the trading session ended on a very long legged doji, but one where the lower shadow was considerably longer than the upper, indicating a degree of bullish sentiment. Following the sharp reversal of the last two weeks, and with a deep lower wick, our forex analysis would point to a rally for the dollar in this pair today, which should give us some intra day long positions, should this signal be confirmed in the short term.  However, with the strong resistance still weighing down on the pair, any profits may be short lived as the 95 technical level comes into play once again, so small profit targets are the order of the day. Bear in mind also that the three moving averages are still weighing heavily at present, so small profit targets on intra day trades with tight stop losses are the order of the day.

Fundamental Forex Analysis

As with many other currency pairs, there is no fundamental news for either the yen or the US dollar today, so  this combination of thin trading and lack of news could lead to some volatile and unpredictable moves in the forex markets. You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.