Yen to Dollar - USD/JPY Daily Fx Chart 5th May 2009

Yen to Dollar - USD/JPY Daily Fx Chart 5th May 2009

With the Japanese market closed for the Golden Week Holiday we can expect little change to the current sideways trend in the yen to dollar pair typical of the past few days.  With the moving averages now converging and little in the way of news we can expect further consolidation in the pair until the market reopens, and my advice is to stay out for the time being.   Moving forward it seems that the pair are likely to trade between 100.5 and 94.50 and only when we see a break above or below this channel can we consider long term trend trading, with the emphasis on the intra day swing trading in the meantime.

Despite this holiday shortened week there are a number of news announcements on the economic calendar elsewhere, and in particular in the US where the stress test results for banks are likely to be released on Thursday and some market commentators are claiming that 10 out of 19 banks are likely to need further funds to shore up their balance sheet.  In addition we have ADP numbers tomorrow along with crude oil inventories and Non Farm Payroll on Friday coupled with various speeches from Fed Chairman Bernanke and Thurday and any of these events can cause the markets to over react and over extend.

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.