Dollar Yen Cuurency Chart - Daily Candle 4th February 2009

Dollar Yen Cuurency Chart - Daily Candle 4th February 2009

As you will see from today’s chart for the dollar yen pair, I have added two lines to show the pennant that is now forming, with lower highs and higher lows, as we move towards the point of the pennant at around $90. Yesterday’s candle was again unclear, providing a small doji cross, to add to the already confused picture. My advice is to stay out of the pair, until we see the breakout from the current pattern. If this occurs to the upside then expect a re-test to $93 and then a move to $95 if successful. As always the Bank of Japan will be in the background!

There is no news due for relase in Japan today, and the main emphasis will be in the US with three key pieces of data, more details of which are available here on the euro to dollar site.