Forex Investment and Currency Trading

• USDJPY: While the pair did not close above the double bottom neckline at 94.65 yesterday, it has clearly continued to rally and the major level that is under threat now is 95.77 - a significant low from Mar ‘08 which converges with trend resistance from the highs throughout Aug & Sept ‘08. A firm rally through there would add to the bullish bias and open the way for 97.44 and eventually the 200 dma at 100.33.
• Interesting to note that many are still talking about the relationship between the JPY and equities - that the JPY should be stronger as equities are lower. USDJPY and other JPY crosses have not only had a good opportunity to fall over recent sessions but to collapse and instead they are higher. It appears as though everyone is positioned the other way which can be a catalyst for an aggressive rally towards resistance levels …i.e. USDJPY CAN rally very quickly even if equities perform poorly.
• Watch 95.77 on USDJPY…need to convincingly get through there. Overall the trend is up.

EURJPY – Towards the top of the range

• EURJPY: Pushing through the resistance level at 122.20 which was the high from Jan 19th. A firm breach of that opens the way for a move up towards the top of the range around 130.

GBPJPY: Closed above the reverse head and shoulders neckline

• GBPJPY: The pair has closed above the reverse head and shoulders neckline and the trend is up.
• The pattern targets 155+ with interim resistance is at 141.54 and 148.56.