After losing ground against an already weak U.S. Dollar, the
Japanese Yen has finally started to take back some losses after nine straight
sessions higher in the USD/JPY. The stall just below the 86.00 major
psychological level peaked with an 85.49 high on April 7. The move lower
however comes as the daily chart has transitioned in an uptrend. The bullish
Directional Bias would suggest that buyers would be willing to support the correction
but with Japan’s nuclear crisis back in the spotlight, there is a renewed
flight to safety propelling the yen higher. With earthquake damage estimated to
be as much as 23 trillion yen, the Japanese economy could be effected greater
than initially anticipated.
This still brings up the issue of whether the current yen
strength is 1) overdone and 2) sustainable. The Tuesday session alone has seen
the USD/JPY move lower from 84.78 to 83.45. With the 200 period SMA on the
daily at 83.47 there is good reason to this that there could be near term
support. The 34 period EMA high is waiting at 83.34 and this would trigger a
conservative swing buy entry because the daily time frame is in an uptrend. A
more aggressive long position could be entered at the 200 period SMA.
This area is also reaching a 23.6% or 38.2% Fibonacci
Retracement depending upon whether the March 16 low or the March 23 low is used
for the calculation.
*Results are not guaranteed, individual experiences may
vary. Past performance is not indicative of future results.
*Results are not guaranteed, individual experiences may vary. Past performance is not indicative of future results.
With two intraday hits at 83.45 and 83.50, the major psychological number is in play and acting as near-term support. The five, 15, and 30-minute time frames are all in mark down trends so the intraday downtrend could be played on bounces on these shorter-term charts. But remember short entries are (for now) counter-trend plays amidst the daily swing buy that is triggering as the USD/JPY sells off.
*Results are not guaranteed, individual experiences may
vary. Past performance is not indicative of future results.
*Forex trading is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The possibility exists
that you could sustain a substantial loss of funds and therefore you should not
invest money that you cannot afford to lose. Read the full risk disclaimer and
privacy policy on trading at http://www.ibfx.com.
Raghee Horner, chief currency analyst for IBFX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
After losing ground against an already weak U.S. Dollar, the Japanese Yen has finally started to take back some losses after nine straight sessions higher in the USD/JPY. The stall just below the 86.00 major psychological level peaked with an 85.49 high on April 7. The move lower however comes as the daily chart has transitioned in an uptrend. The bullish Directional Bias would suggest that buyers would be willing to support the correction but with Japan’s nuclear crisis back in the spotlight, there is a renewed flight to safety propelling the yen higher. With earthquake damage estimated to be as much as 23 trillion yen, the Japanese economy could be effected greater than initially anticipated.
This still brings up the issue of whether the current yen strength is 1) overdone and 2) sustainable. The Tuesday session alone has seen the USD/JPY move lower from 84.78 to 83.45. With the 200 period SMA on the daily at 83.47 there is good reason to this that there could be near term support. The 34 period EMA high is waiting at 83.34 and this would trigger a conservative swing buy entry because the daily time frame is in an uptrend. A more aggressive long position could be entered at the 200 period SMA.
This area is also reaching a 23.6% or 38.2% Fibonacci Retracement depending upon whether the March 16 low or the March 23 low is used for the calculation.
*Results are not guaranteed, individual experiences may vary. Past performance is not indicative of future results.
*Results are not guaranteed, individual experiences may vary. Past performance is not indicative of future results.
With two intraday hits at 83.45 and 83.50, the major psychological number is in play and acting as near-term support. The five, 15, and 30-minute time frames are all in mark down trends so the intraday downtrend could be played on bounces on these shorter-term charts. But remember short entries are (for now) counter-trend plays amidst the daily swing buy that is triggering as the USD/JPY sells off.
*Results are not guaranteed, individual experiences may vary. Past performance is not indicative of future results.
*Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Read the full risk disclaimer and privacy policy on trading at http://www.ibfx.com.
Learn currency trading with a free forex trading account at IBFX.
Raghee Horner