Yen Dollar - Daily Currency Chart 6th May 2009

Yen Dollar - Daily Currency Chart 6th May 2009

With Japan still closed for the Golden Week holiday trading volumes can best be described as “thin”, with the dollar yen trading in a relatively narrow range until rumours that Bank of America is likely to need at least $34bn of fresh money to help restore its balance sheet at which point risk aversion returned once again to the market and  traders and investors opted for the safe haven status of the Japanese yen.   Technically we continue to trade in the current sideways range and as outlined in yesterday’s market commentary, until the current holiday ends and we see a resumption of normal volumes it is unlikely that this price action will change very much in the next few days.  In addition with all three moving averages converging around the 98 price point the picture is becoming less clear for intra day trading and therefore my suggestion is to stay out normal market conditions apply once again.

The fundamental news on the economic calendar is restricted to the US and which are covered in detail on the eurodollar site.  However, the news roads are all pointed to Non Farm Payroll on Friday and the results of the bank stress test tomorrow.

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.