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Yen Difficult to Trade with Regularity by GoLearn Forex

Discussion in 'Forex Daily News & Outlook' started by GoLearnForex, Dec 22, 2009.

  1. GoLearnForex

    GoLearnForex New Member

    Nov 29, 2009
    Likes Received:

    The Yen has been volatile at times this year and thus very difficult to trade with regularity. In recent days a number of technical indicators have been triggered to warrant a potential Short JPY position. The 50 day MA was breached last week, but due to volatility, that by itself is not a lone trigger.

    The Yen has made a higher low and now has surpassed the prior high thus presenting a trend pattern we rely on often, consisting of higher lows and higher highs. Additionally, the Yen appears primed to close above the 100 day MA, as well as above the Fibonacci 23.6% Retrace level at 90.93.


    The combination of the above mentioned technical indicators potentially being triggered would signal a Short JPY entry. We target 94.00 for a near term take-profit level coinciding with the 200 day MA. We would add to the Short JPY position with a breakout north of the 38.2% Fibonacci level at 94.70. If that breakout occurs the next longer term support level for the Yen is 97.75 or the 50% Fibonacci Retrace level. The level also represents the USD/JPY high last seen in August.

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