US Dollar vs Japaneses Yen - Daily Chart 11th May 2009

US Dollar vs Japaneses Yen - Daily Chart 11th May 2009

The dollar yen continues to consolidate sideways and was one of the few pairs that failed to benefit from a sustained US dollar sell off on Friday.  With all three moving averages intertwined and with daily candles showing little prospect of wide spread break outs or any discernible trend, this sideways action seems destined to continue for some time to come, offering swing traders excellent opportunities between 100 and 94.50 with a bias to the short side being currently favoured.  This is emphasized in the weekly chart where we are now forming a strong pennant pattern which will no doubt result in a dramatic break out in due course.  My trading suggestion is either to stay out until we see this breakout or to attempt to swing trade between the levels outlined above.

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