Fri, Jul 24 2009, 15:39:12 GMT
The Greenback continued to trade higher against the Yen over the last two week after hitting the 4 month low at 91.73 (13th Jul, 2009). However, on the longer term chart, it is still going down, moving in the downward sloping channel since the last 4 months. Last week, an improvement in Retail Sales and Producer price index along with CPI numbers in the US helped the pair up after a heavy fall from the high of 96.96 (1st Jul, 2009).
On the daily frame, Three White Soldiers indicate a rally for the pair over the next 3 or 4 days after which upside traders can expected to see further downward movement. On the 4 hour chart, the overall scenario is bullish and the pair is moving in the band of 92.17- 96.97. It has broken the 23.6% Fibonacci retracement level and is now touching the 38.2% retracement level. In the coming week, new home sales numbers are expected to be change for the better- also suggesting a signal for bears not to short. Stochastic and ADX both pointing towards upside. From here, the next resistance level for the pair is 96.25 and the support level is 93.61. At present, the pair is in an interesting zone, providing opportunities for swing traders to make new long positions for the target of 96.25 and reverse position (make shorts) when the pair hits 96.25, for the target of 93.61.
