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Cross = JPY : Various Charts (Posted Below)

On looking through my day charts, I noticed and want to bring to your attention the JPY.

As usual on drilling down we look to the Monthly chart for an overall picture and check on the trend for strength of movement.

It is plain to see we are in a downtrend since 2002 and before that pullback you could look to 1998. You will see from the more recent trend lines drawn on the chart, we have been creating some lower lows since 2007.

The weekly chart

Here you see the more defined down trend that we are in and the support line drawn that provides the squeeze on price. With price in it's squeeze, which way are we looking to break ?

Remember the trend is your friend.

Day Chart

(Software is currently not allowing me to upload images, Please refer to your day chart)

We have the VI sitting above the price and you will see that price reversed at the resistance trend line. Since then price has retraced and if to produce another lower low, then it should break through the support line. I am sure some of you might have seen this set up over the last 6 days or so and maybe already in the trade. If that is so then well done.

Lets follow with interest.

Chart courtesy of Advanced Get. Data provided by eSignal.

Trade with Passion

John Maher
Forex Analyst