Archive for fx trading

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.