Simple Forex System Trading

Well, the April result is out and Japan’s exports were not doing that well even though Yen has been pretty much trading above 90.  Japan’s trade deficit swelled, highlighting the concerns about the efforts to revive the world’s third-biggest economy.

Yen has been floating above 90 since January.  Maybe 4 months are too short to see the result yet, but weaker yen should definitely help.  Just look at the U.S. economy, it’s been 4 or 5 years now, and it still shows little improvement.

For Euro, 1.28 seems to hold at the moment and today has finally regained 1.29.  If it can hold above 1.29, then it can challenge the next resistance at around 1.2970.

This is a follow up on the Canadian Dollar long posted on May 14, 2013.  I took a screen shot of the original post and placed it below.

My order was not filled until May 16.  Almost missed.  It was cutting very close, but I got in.  Take profit was set at 1.0280 as mentioned in the original post.  As luck would have it, I got out the very next day.

The dollar edged up against the yen on Tuesday after Japan’s economy minister clarified earlier remarks about the yen’s weakness.

“The weekend comments were misread. He didn’t say it in the way it was reported in English,” said a Japanese market participant.

“But the recent strength (of the dollar) is faster than expected, that’s why I think they’re trying to bring it down a bit, but the basic stance is that they prefer to maintain a weakening policy in the long-term.”

This should be a no brainer.  Why would a Japanese official come out and say, “We want strong Yen.”  Totally impossible.

Euro is finding some support around 1.28 and it is currently stalling at around 1.29 as indicated on the chart (1st resistance).  The 2nd resistance comes in at approximately 1.2970.  So, apparently, the 1.30 and 1.29 levels are now providing some resistance and placing pressure on price.   From 1.30 to 1.32, the resistance is strong and seems difficult for Euro to break through unless there are a series of Dollar negative news in the near future.  Looks like it should be range bound for a while.

Via: http://www.forexfactory.com/news.php?do=news&id=428515