01 March 2011

USD/JPY : Weekly Triangle Forming

  • Monthly : Long term downtrend. No question.
  • Weekly : Forming triangle. Nearer to downside boundary (at 81.35) now. Sell a break = downtrend continuation.
  • Daily : Nothing here. Broad 81-83.5 range.
  • Risk : Whilst number of open positions remain many, Core Book overall risk is small. Plenty of room to take on new trades. This is one of those I have been watching closely. 


ryan said...

Hi TS,

It seems with all the turmoil in Mid East , the flight to safety has not been accompanied by stronger USD. It's strange.

Taichiseal said...

Think it is an interest rate differential story. With inflation pressures looming and the Fed seemingly the most reluctant of all the major central banks to tighten, there is no reason to buy USD. Even in flight to quality situations, there are better alternatives than USD.

Taichiseal said...

Ryan ... see this ..