Forex commentary: EURJPY and Daily Price Action 9-14-2010

Posted on 15 September 2010

Forex trade Setups comment: EURJPY and Daily Price * GBPJPY * – update

GBPJPY: update

The GBPJPY formed a break false more inside bar and support near 128.00 yesterday.This configuration fakey tipped off fundamental news dealers outside Japan imminent as regards their intervention in the FX market today to weaken the surging yen in order to strengthen their economy sagging.

EURJPY:

The EURJPY inside bar installation of rejection that has formed last Thursday off support near 106.00, drove more aggressive and penetrated the resistance around 109.50. the yen fell 2%, as the Japan Wednesday intervened in the FX markets for the first time in six years.

We can also see in the chart below that a candle bar pin bullish formed on Tuesday, this could be another tip off that prices had the potential to challenge the top of the range commercial near 109.50.

AUDUSD:

The daily has penetrated the resistance weekly near 0.9400 in the last two days and was able to maintain prices above this layer as shown in the following graph. momentum is however still bullish, but would wait to see a solid price Setup develop action before entering a new long position.

A move down to support near 0.9220 would be considered possible scenario of purchase if we saw some form of action bullish price close to this level.

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Comment:

Japan intervened in the forex markets for the first time in 6 years on Wednesday to stem the economic damage due to yen surging, this worked to push the yen significantly lower across the Board and lifting on Tokyo stocks by over 2%.

Gold drove to fresh high as of Tuesday, and this helped a weakening dollar, which led to a bullish trend in Daily, EURUSD and GBPUSD.

The Dow lost points 17.64 or 0.17%, the S & P 500 fell 0,80 points or 0,07% and the Nasdaq acquired 4.06 points or 0.18%.