Yen Pairs

A couple of price set ups on the weekly chart on the Yen pairs for those who are interested in checking them out.The Yen has been strengthening since last week as a result of flight to safety especially from Europe that continues to see more and more economic turmoil on member states. Euro/Jpy has some divergence on the stochastics that may or may not play out.It is also at the 61.8 fib level next to some support at 102.66.This week holds some major European GDP releases that may impact the market tremendously.Lets see how it all plays out.

The Nzd/Jpy  has more or less the same set up and may be a great play with some divergence on the RSI standing at a support of 62.50 this morning.With growing concern on its poor performance, it may just have a little correction should risk appetite continue to fade and resume its bearish trend.Watching for a better price to go in short.



The Euro dollar on the other hand broke out short as we had anticipated in the earlier week for some good pips on both the Euro/Usd and the Usd/Chf.The run may continue should there be poor economical data this week while the Usd will continue to gather strength as the safe heaven currency.Nzd/Usd also has some divergence on the weekly chart and I am waiting this pairs to see if opportunity may present itself for some correction before continuation with the trend.Good luck trading this week and watch out for the GDP figures coming up.

Trade set ups

I will be looking at these trade set ups to get in should price confirm my directional bias:

The Euro is now tightly packed in a congestion area against the Usd and the Aud which saw some weakness earlier this week as a result of the 50 basis point cut by the RBA.A break out this congestion areas may see some good price movements.
In my opinion Eur/Usd is poised for a bearish break further down with all the turmoil in the region and the Spanish bank issues that have refused to go away.

 Usd/Chf which is the inverse of Eur/Usd is also in such a range and may be headed higher should the pair move above the 9150 resistance with a clear break.

Eur/Aud has been in a up trend since mid February and is currently in a congestion area.A break from this ascending triangle either way may be a good trade given the fundamentals in the two regions.

Eur/Nzd has seemingly formed an inverted H&S pattern on the 4 hr chart.However,follow through may be a bit tricky for this pair but only time will tell.

And finally,Cad/Chf is also in an ascending triangle on the daily chart.The Swiss Franc has been a little tricky to trade recently and I really don't like its price movements.But for those that trade this pair,fundamentals from Europe are very important right now especially any rhetoric from the SNB can really cause it to really move.

I will be watching this pairs for the next few hours as its already Thursday and who knows what will happen during the weekend.Good luck trading and happy pips.

Morning price action

The Pound seems to have lost some steam and is now looking to trade lower against the dollar since yesterday.It is also looking lower against the Yen which broke a major support area yesterday and is poised for 128 in the near future. However,there has been very little movement in the market for a while now as capital is still sited on the sidelines waiting for better opportunities.

Most pairs are also looking weaker against the Yen as its intervention by the Government did not yield the results they had been hoping for.They increased their asset purchase programme in the hope of creating a weaker yen as they had done before that saw the Usd/Jpy shoot up from the 77 to 84 area earlier in the year. For the short term, i am bearish on most yen pairs as I continue to watch for any events that may point otherwise for the long term .
The Euro seems seems to be trading stronger this week against most pairs and could be in a minor correction from last weeks price action.The Euro area is still under a lot of pressure with the downgrading of Spain and its rising unemployment as well as the strong resistance by the major countries towards bailouts for weaker countries.We are also watching the French election which may be a mover of price action especially since Nicolas Sarkozy is trailing his opponent from the socialist party.Lets continue to keep an eye on this events as they unfold.
 The RBA has just cut its interest rate by up to 50 basis points which is 25 basis points more than the expected cut this morning and has seen the AUD lose value against most currencies across the board. I will continue to follow this events and take care that my trades are not negatively affected by such events.
Good luck trading !!!!

This weeks 23rd April 2012

Pound has reached a major resistance line at 1.6127 on Fridays closing and may be headed lower this coming week.There is some bearish divergence on the daily charts with the MACD which in my opinion suggests some bearish  move to the 6000 levels.

Daily chart with bearish divergence.Keep an eye on this pair this coming week depending on how it will open come Monday morning.There is some news coming this week on the 1st quarter GDP reading s that may be a game change with higher expectations.

There is some bullish divergence on the Aud/Usd pair on the weekly chart which may signal some bullish action this coming week.However,most readings from Australia have not been as encouraging and may be slow to develop.Weeklies are however long term and any news from the FOMC this week may be a game changer.Take note and act accordingly.

 I am also looking at the Yen pairs this week which have been bullish across the board for most of last week.Still bullish for this pair though especially with the Eur/Jpy that has a big bullish bar on the weekly chart that only suggests further bullish action on an upward trend since mid January this year.A move higher could lead to the double top formed at around the 112 area earlier this year.

However,Gbp/Jpy has formed a harmonic pattern that may suggest some bearish price action on the daily chart for the coming week.The pair is almost at overbought on the daily chart.I will be watching for price action for this pair to take advantage should the Yen strengthen.

This are the trade set up I will be watching closely for this coming week.Kindly do your own analysis and feel free to add your thoughts to what I have posted.Have a great week people.

possible trades

On a technical basis, i have Chf/Jpy that has formed a pin bar on a major support at  around 87.75.I will be watching to see if it actually holds on as major support.The pair is also at oversold.Most yen pairs move together and will also have an eye out for the others.

Eur/Aud has also formed a bullish candle just like the Eur/usd and the Gbp/Usd.We will be watching this pair if they will continue with the move upwards after a yesterdays dramatic comeback during the US session.

Good luck trading.

Possible patterns

Silver has formed what could be possibly a H&S pattern depending on how you want to see it.Will be looking for a break below the shoulder line for an entry short.The pair which has been closely correlated to gold for a while now will definitely be affected with news from the US dollar with all the QE3 speculations and may be good to watch for opportunities.

 Gbp/Jpy is in my opinion forming a Gartley pattern on the weekly time frame.This could be a good indicator on the direction of the trend should it play out as expected.Repatriation of funds by corporations back into Japan has caused a lot of volatility for the Yen pairs over the last few days of trading and a slow down may cause the currency to once again strengthen to its previous position. Our earlier positions on this pair could have given us plenty more pips had we held for the longer term.

Good luck trading to all and happy pips.

Eur/Jpy

Eur/Jpy is actually very bullish after a lackluster performance during the European session earlier in the day.We had spotted a reversal potential pin bar yesterday as per the last post which has given us so far some good pips after it reversed all the way to the 109.00 level.Chances are that it might get to the top of the range formed between the 111.30 area and the 108.60's area.I closed out the position since we do not know what next week will bring.