Yen Dollar - Daily FX Currency Trading Chart 21st April 2009

Yen Dollar - Daily FX Currency Trading Chart 21st April 2009

Yesterday’s sharp falls in equity markets, precipitated in part by continuing worries about the banking sector and unfounded rumours about a dubious blog which claimed to have the results of the banks’ stress tests, forced many traders and investors into a variety of safe havens, of which the Japanese Yen is one.   The wide spread down bar on the dollar yen daily chart closed the day below the 40 day moving average for the first time in the last few weeks and more significantly also penetrated the strong platform of support currently in place just below the $99 level.  With these two factors combining, coupled with a failed move higher this morning to break back above this level and the 40 day moving averages means that we can only conclude that bearish sentiment currently prevails and therefore my currency trading suggestion for today is to find small short positions on the 15 and 30 minute charts.  In the short to medium term I expect the see further sideways consolidation before the currency pair have another concerted run at the $100 region and above.

Fundamental news items on the economic calendar for today relating to yen to dollar is dominated by an appearance by Treasury Secretary Geithner, who never fails to move the market, planned or otherwise, before a Congressional Committee in Washington.  This appearance coupled with jittery equity markets may add some volatility to this pair, and in addition the trade balance figures for Japan are due for release in the small hours of the morning and are much more likely to affect the Asian trading session.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.