Yen To Dollar - Daily Candle Chart 6th February 2009

Yen To Dollar - Daily Candle Chart 6th February 2009

Finally something positive to say about the yen to dollar pair! Yesterday it finally happened, as I have been suggesting for some time now, and we saw a volatile breakout from the pennant pattern of the last three weeks with a wide spread up bar. As you can see from the daily candle chart the up candle has penetrated all three moving averages, and it likely that we will now see a move back up to retest the 93.50, with a possible move higher to $95 and above. My suggested trade for today is therefore a small long position with a stop loss below at the $89 level.Whilst I don’t normally trade on the strength of one candle, as this is a significant breakout from a consolidated move, I believe it has sufficient weight to provide us with a good risk profile.

The news today on the fundmentals will be dominated by the Non Farm Payroll figures due out later today in the US – these will affect all the markets whether you are trading currency, stocks, commodities or equities. If you would like further details please just follow the link to the euro to dollar site.