Yen Dollar Daily Chart - 8th April 2009

Yen Dollar Daily Chart - 8th April 2009

Mmm! Yesterday’s candle neither confirmed nor denied the gapped up shooting star of Monday which we saw as a possible early warning that the market may have temporarily run out of steam before moving higher, with the bar finishing marginally higher and with a long, lower wick.  This morning’s price action has seen a fall in the dollar yen but significantly the low of the day, so far, has bounced off the 9 day moving average and the strong resistance level below suggesting that this may only be a temporary short term reversal, and possibly providing us with some excellent buying opportunities for a continuation of the bullish move higher.  To identify these opportunities I would suggest looking in the shorter time frame charts such as the 15 or 30 min and buying above 99.80 and adding to positions should prices rise above the psychological 100 later today with a longer term view of a target around 102 eventually moving towards 105.  With all three moving averages pointing to a move higher there is no indication as yet that the bearish signal will be confirmed and as things stand at present it seems likely that this will be ignored as we see a move higher next week.

The fundamental news on the economic calendar relating to yen dollar saw the current account number for the Japanese Yen significantly exceed the forecast of 0.51 trillion, coming in at 0.67 trillion adding to the decline which has continued since mid 2007.  The Economy Watchers’ Sentiment also came in better than expected at 28.4 against a forecast of 20.9.  As with other similar diffusion indices any figure above 50 indicates optimism and below 50 suggests pessimism and the trend here is seen as slowly improving from a low in January 2009 of 15.9.  The remaining US news is covered in my eurodollar site.

You can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the links, and if you are looking for a good ECN broker again just click the appropriate link.  Remember also that many markets are closed at the end of this week for various national holidays.