Yen

Dollar Yen - Daily Candle Chart 6th March 2009

Dollar Yen - Daily Candle Chart 6th March 2009

We were right to be cautious yesterday, with the day finishing with a down bar and a bearish engulfing signal, which has followed through in this morning’s trading session, moving below the 9 day moving average. On a personal note I have now been stopped out of my position having moved my stop loss up to the $97.00 region in order to lock in my profits as suggested yesterday. Now we need to start looking for a re-entry point once we have a clear signal from the daily or weekly chart. With a fall this morning it seems that the bearish signal is being confirmed today, but we will have to wait and see, and we are now looking for the 14 day moving average to provide the required support to prevent the bears taking control once again. My view is that we will see a re-test of the psychological level of $100, and a move higher once this area has been cleared.

The main economic and fundamental news is our shortly in the US, with the monthly release of the NFP ( Non Farm Payroll ) data – always guaranteed to inject some volatility into the market. The only other news which may move the US dollar, although I’m not quote sure why, is on Saturday with Ben Bernanke due to speak at the naming of a Highway Interchange in his honor, in Dillon!! – Fame at last!

The short term is bearish, the medium term is sideways, the long term is bullish.