Support the Dollar Yen

The Dollar has been taking a real beating over the past year and if you follow the old adage "the trend is your friend" then there is no reason to assume anything will change anytime soon.

Although we are not about to go against this down trend and take a long position we should all be aware of the support level from 1994. We have bounced from it so far but if we BAC below it then use our entry stop loss technique for entering this trade for a continuation. The natural behaviour though is to have a breather before a continuation (going on the basis there is a continuation). Those of you we have trained will know where those breather levels are. Please note this is all based on technicals and right now the fundamentals look very bleak.

The chart below is weekly USDJPY.


Chart courtesy of Advanced Get. Data provided by eSignal.

Forex Analysts
Anne Chapman & Javid Shaik