US Dollar vs Japanese Yen - Daily FX Chart 2nd June 2009
The yen to dollar currency pair continues to thrash around in the 95-97 price region creating a dangerous whipsaw on the daily chart making trading virtually impossible with yesterday’s candle exemplifying the struggle with deep wicks to top and bottom and a wide spread up bar, following on the back of a wide spread down bar for the previous day. With the dollar yen price now sandwiched once again between the 9 and 14 day moving averages below, the 40 day moving average above and with the neckline of the head and shoulders providing an impenetrable barrier at present this is not a time to trade this pair with any degree of confidence and I would therefore suggest you step aside for the time being. Part of this whipsaw action is due to technical factors, partly the Japanese Yen’s role as a safe haven currency and partly the interventionist nature of the Bank of Japan who cannot afford to allow the Yen to strengthen at a time of such dire economic circumstances and thereby threaten their fragile export market still further.
With no significant fundamental news on the economic calendar for Japan we only have pending home sales later today for the US which I have covered for you on the eur/usd site.
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.
