Dollar Yen - Daily Candle Chart 9th February 2009

Dollar Yen - Daily Candle Chart 9th February 2009

Thursday’s breakout on the daily chart for the dollar yen, was followed on Friday by a wide spread up bar which has finally provided us with some direction for our intra day trading with all the daily averages now pointing to a move higher. The 9 day and 14 day averages have now crossed and the 40 day average is starting to turn. More importantly the breakout on Thursday penetrated the resistance at $91, and with Friday’s up bar we can now see a move higher to $93 and above, but in any long position we need to be aware of the resistance ahead. My suggestion for today is therefore to attempt small longs with a stop loss below the $89 region. As I mentioned in the weekly update, there is very little fundamental news for the Japanese Yen this week, and all eyes will be on the G7 in Rome on Friday. I will remind you again on Friday but any open trades will need to be covered or closed as the meeting extends into the weekend and we could see volatility in the markets at the open on Sunday evening.

The short term outlook is bullish, the medium to long term is sideways.