Yen To Dollar - Daily Candle Chart 27th February 2009

Yen To Dollar - Daily Candle Chart 27th February 2009

With four days of strong gains, we are seeing some profit taking entering the market this morning with prices off the current highs. As suggested earlier in the week, we met our target of $98.50 yesterday, and the daily candle was another wide spread up bar, with all the moving averages providing strong support. There is little in the way of significant resistance ahead, and therefore my next target is for the pair to break through the psychological barrier of $100 and above, which I believe will be achieved in the next few days. If you are waiting to enter the market with a new position, then I would suggest waiting until Monday in order to assess the candle and its relevance. With the weekend ahead many traders will be squaring their positions, and with thin trading volumes, a wait and see approach is the best option for today.

The fundamental news is all in the US today, and I have covered this in detail on the euro to dollar site for you. Have a great weekend and I will be back on Monday.