Yen USD - Daily Candle Chart 6th April 2009
As I had been suggesting all week we have finally had the decisive breakout that we have been waiting for on dollar yen pair with Friday’s close finishing above the psychological 100 mark, with all three moving averages now pointing to a move higher. This price action has continued in today’s early trading with prices opening gapped up with what the Japanese chartists refer to as a “rising window” (this is very unusual in the currency markets). The consolidation period of the last 4 weeks now provides an excellent platform for a move higher to the next major area of resistance which is seen just above 105 price level.
There is very little in the way of fundamental news on the economic calendar relating to the dollar or the yen for today but there are several important items for the Japanese Yen tomorrow, not least of which is a tentative press conference from the Bank of Japan followed on Wednesday by the BOJ monthly report.
My trading suggestion for today is to continue to look for small long positions, timing your entries and exits by using the hourly charts and taking any profits as soon as possible.
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