FX Chart - USD/JPY Daily Candle Chart 14th April 2009
The dollar yen pair continues to consolidate forming a strong platform around the 100.55 region, which I believe will provide a springboard to a move higher with an initial target in the 102 region and a potential for 105 to be achieved later this month. Trading today is dominated by the fundamental news on the economic calendar all of which is being released in the US shortly and covers everything from PPI data and retail sales, through to a speech by Fed Chairman Bernanke at the end of the trading session. I cover all the details of these news releases on the eur/usd fundamental news site.
From a technical perspective this morning’s trading has been confined to a relatively narrow range between the 9 day and 14 day moving averages but it is significant to note that the low of the day has bounced off the 14 day moving average suggesting that we should see a move up in due course, a view confirmed by last week’s price action where again we saw the lows of the day bouncing off the 9 day moving average – always a strong bullish signal. Today’s price action provides an excellent opportunity to buy into the market for a longer term position for the next few days and I would suggest placing any stop losses below the strong support now in place in the 98.55 area or lower. Look for your entry points in the short timeframe charts and in particular buying on any hammer signals or bullish engulfing candle.
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