Dollar Yen - Daily Candle Chart 13th March 2009

Dollar Yen - Daily Candle Chart 13th March 2009

The long legged doji on yesterday daily candle chart is confirmation of the inherent tension in this currency pair at the moment.  With the body of the candle closing below the 9 and 14 day moving averages and with the upper leg having penetrated both during the day.  Clearly the market is indecisive.  Had this signal appeared following a significant bull rally or bearish reversal then we could have taken this as a strong sign that the trend was reversing and therefore providing us with a possible trade.  However, in the current confusion of the sideways consolidation the candle has far less meaning and my advice remains the same as yesterday – in other words we need to see a decisive break above 99 or even 99.40 for a break to the upside and if prices today fall below the moving averages again then clearly the bearish sentiment still remains in place.  Any potential downside trade for today could be entered at 97.90 with a stop loss above at 99.55.

The main fundamental news is due for release in the US later this morning with the trade balance figures up first, closely followed by import prices and the University of Michigan sentiment number.   A more detailed explanation of these can be found at my euro to dollar site.

In order to help you with your trading I have added several new services to the site. First there is an economic calendar which provides details of all the fundamental news items from around the world, including details of the forecast and previous figures, but if you prefer your news on video, then the latest currency news is the place to go, with updates three times a day. In addition there is a live news feed, and for the latest prices, live currency charts covering over 70 of the world’s most popular traded pairs. Finally if you would like help with choosing your ECN broker, I have provided some guidance and suggestions for you, which I hope you find useful.