USD/JPY - Dollar vs Yen Daily Candle Chart 14th July 2009

USD/JPY - Dollar vs Yen Daily Candle Chart 14th July 2009

As markets now wait for the earnings season to start in earnest with the release by Goldman Sachs (before the bell) of some spectacular results we may see the yen to dollar pair temporarily reinvigorated.   This would tend to be reinforced by the daily candle chart as yesterday’s price action created a perfect tweezer bottom formation with Friday’s candle, this time on an up bar, with both candles finding support in the 91.80 price region.  With such a signal we should expect a reversal higher today, no doubt to be triggered by a reduction in risk aversion if equity markets take their cue from the Goldman Sachs results and a consequent knock on effect on the Japanese Yen.  However, the extent of this rebound will be curtailed once results begin to hit the market.   All the fundamental news on the economic calendar for the US Dollar is covered on the Eurodollar site and the Japanese Yen the main item will occur during the overnight trading session with a BOJ press conference, monetary policy statement and overnight call rate decision all due.   Given the current disconnect between a strong Japanese Yen and dire Japanese exports it would not be surprising if the BOJ took this opportunity to signal some radical measures especially with a general election on the horizon.

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.