Forex Investment and Currency Trading

$CAD has moved higher this morning as stops have gone of at 1.3000. This now sets a high we haven’t seen since 2004. There are short positions lingering around the market, so this could go higher even.

[Read more →]

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 [...]

[Read more →]

There are increasing signs that contrary to popular wisdom we may be starting a period of broad based JPY weakness that could see both USDJPY and the JPY crosses higher in the weeks ahead.
USDJPY-Daily chart

USDJPY is forming a very well defined double bottom with a neckline at 94.65. In addition it has moved decisively above the 55 day moving average in recent days.
The target on a close above here would be for a move to 102 with good trend line and 200 day moving average resistance in the 100.50 area

USDJPY-Weekly chart

Positive momentum divergence at the lows supports this potential with [...]

[Read more →]

Technical Analysis – Daily Chart
EUR-JPY has been consolidating the sharp losses for a few months now, with upticks finding sellers at 122+ and 131 capping overall gains, while dips struggle to extend beyond 114/112 just now. The medium- to long- term downtrend is still intact, but the short-term trend seems flat and the risk is that as daily momentum indicators continue to turn higher or show clear bullish divergence, the cross could start to probe the top of the established range near 131. Any losses through 112/110 would leave retracement targets. For choice, further range trading in the short term [...]

[Read more →]