Saturday November 13, 2010 - 05:32:12 GMT
Share This Story
Forex Hound - www.forexhound.com
USD JPY Confirms Weekly Reversal Bottom
This week the USD JPY
confirmed last weekâ€™s closing price reversal bottom with a follow-through rally
to the upside. The primary catalyst behind the Dollar/Yen rally was the
interest rate differential. Treasury Bond yields rose this past week while
Japanese rates held steady. The increased spread helped draw investors into the
Dollar. Compounding this incident was a hard sell-off in equities and the
shedding of risky assets.
Technically, the weekly main
trend remains down, but the confirmation of the closing price reversal bottom
is a sign of higher markets to follow.
Often this pattern leads to the start of a 2 to 3 week rally equal to
50% of the last major range. Based on the range of 94.98 to 80.24, the
potential upside target is 87.61 to 89.35.
Contributing to this weekâ€™s
bullishness was a breakout above a downtrending Gann angle at 80.98 this week.
The next downtrending Gann angle is 87.98. This coupled with the Gann angle
creates a resistance cluster at 87.61 to 87.98. The recent steep downtrend has
created a major whole in the weekly chart which indicates this market has
plenty of room to the upside.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."