USD Yen Daily Fx Chart 18th May 2009

USD Yen Daily Fx Chart 18th May 2009

Friday’s wide spread down candle provided a significant signal in the daily chart for the dollar yen as the close of the day finished below the neckline of the head and shoulders pattern which has been forming for the past few months, and now provides us with an excellent opportunity to trade the short side of the market with an interim target at the initial support level of 92.  With the 9 day average now crossing the 14 day and all three moving averages pointing sharply lower this is now adding weight to the bearish sentiment.   Other than Japanese Household Confidence which came in better than expected earlier today at 32.4 against a forecast of 32.1, the most significant items of fundamental news on the economic calendar for both the US Dollar and Yen start tomorrow when we can expect revised industrial production figures and preliminary GDP for Japan and Building Permits data for the US.  My trading suggestion for today is to look for short positions with your entry points on the intra day 15 or 30 minute chart with a stop loss above 98 and look to build on these positions as we move below 94 and deeper.

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.