Yen Chart 2

Here is a daily chart of the Yen. Based on history, you can see how accurate fib time has been. The high of December 5th 2005 and the low of May 18th 2006 has projected the high (0.382), low (0.50) and high (0.618) very accurately. The recent high of 0.618 fib time is the 26th August & possibly a wave 2 or B.

Please do your own analysis before taking on this or any other trade.

Good luck and good night.

Euro & Yen

Above is the Yen chart and as you can see we have a tweezer formed and currently what looks like a formation of a spinning top (but wait until the hour is up and check that again). The DTosc also looks overbought and we are also hitting a the top end of the trend line (not shown on chart above but check that on weekly chart drawing a line down fron the top of Feb 1st 2002 and the top of Dec 9th 2005). In addition to that we are at a fiib reversal.
The analysis shows shorting opportunity on Yen but to be sure maybe waiting for the DTosc indicator crossover (34) to occur would be safer bet but you decide. Stop shoud be couple of ticks above recent swing high providing only limited risk.

The Euro is just bobbing along without any real direction as everything is pending what President Trichet has to say tomorrow. After he has spoken, later in the day we have President Bernanke speaking so expect huge volatility tomorrow.

Stand aside (unless already in a trade) and wait for direction to take place before committing to a position.

Good luck tomorrow.

Dollar Down Yesterday

After most of the day with the Euro sailing down & the Dollar heading up yesterday, the minutes pushed the Dollar down in the evening. The Euro at present is range bound and has not produced anything for us to get a new confirmation of direction which still suggests the Euro is heading down.
Unfortunately my sell stop was not triggered and missed out on the move down (remember sell the rallies?).

If unsure of what the Euro is doing (which most people are as the unfolding waves are complex) then stand aside and wait patiently for a sell signal. Use fib and swing lows to evaluate appropriate entry points based on a 60 minute chart.

I will not have time to post in the morning tomorrow so I will try to post this evening with a chart.

My opinion is over all the Euro will still be heading downwards be it with some bounces on the way.

Good luck.