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Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = JPY : Day Chart (Posted Below)

I hope you all had an enjoyable week end away from the markets and are ready for another week of volatility. The forex markets have been an interesting place to be over the last 18 months as countries of the world try to sort out their financial crisis out. I was reading at the week end that more and more people are turning to invest their monies into the forex rather than the stock market. Good news for the Dynamic Trader as it will mean more dumb money for the markets to play with and more for us smarter ones to profit on.

I thought this week a visit to the JPY was overdue and at the same time remeber to keep in mind the studies we have done of late, as there is one or two trades availible within those crosses.

The JPY below shown on a day chart,has been in a downtrend as you can see from the lowering of the retail index above price, and since its low on 17/12/08 has moved sideways.

I have drawn in for you Support & Resistance lines which have given us both double bottom and top accordingly. These have tended to be predictable and you would envisage a move down in price as its next course.

On studying the RSI we find a different story. If we compare RSI vs Price on the double bottom we find convergence. Then we look at the latest pattern of double top and again we find convergence.

We have RN 94 and resistance 94.64 to use for a BOB and ESLT if price heads up as RSI indicates.

If we stick with the trend, price moving down within the support / resistance channels will give plenty of opportunities to enter the trade.

As always do your own analysis before entering the trade and use a stop loss.















Courtesy of Advanced Get / E Signal

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Trade with Passion
John Maher
Forex Analyst