Yen To Dollar - USD/JPY Daily Candle Chart 17th July 2009

Yen To Dollar - USD/JPY Daily Candle Chart 17th July 2009

As the markets swing between risk aversion and risk appetite we see this battle reflected in the price action of the yen to dollar pair.  Yesterday’s candle on the daily chart closed the session marginally lower and with a deep lower wick almost completely mirroring that of Wednesday, but this time as a down bar.  It is interesting to note that both Wednesday and Thursday’s candles found resistance at an identical point on the daily chart, namely marginally below 94.50 and indicative of a tweezer top which would suggest that a move lower as a result.   This view is supported by the 14 day moving average which is currently acting as a barrier to any move higher, however, we also need to be cautious as yesterday’s close found some support at the 9 day moving average.  Today’s price action is likely to be restricted to a relatively narrow trading range given the lack of any meaningful fundamental news on the economic calendar and coupled with the fact that Monday is a national holiday in Japan and therefore volumes today are extremely thin.

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