ForexPros Daily Analysis June 02, 2011
USD/JPY has broken the channel and now is facing down
The break-down of the channel in the daily can be announced as successful. The Yen retested the lower boundary on Tuesday and returned to declines yesterday.
USD is usually getting stronger against most of the currencies when Wall Street falls, and so it did but not against the Yen.
The Yen is now supported at 80.70 and a break-down of this level can take it down to 79.0. However, if it crosses above 81.75, it can be pulled back into the channel.
In the 4-hours chart, there is a bearish triangle, also supported at 80.70. It is possible to look for an intraday trade if it breaks the support, aiming to 80.0.
In times of uncertainly investors will look for solid investments, and they found it in the Yen. However, no instrument is safer than the other.
—
Forex Trading analysis written by Bastian Rubben for Forexpros.
—
New on Forexpros, the Currency Correlation Calculator !
—
Disclaimer:
Trading Futures and Options on Futures and Cash Forex
transactions involves substantial risk of loss and may not be suitable for
all investors. You should carefully consider whether trading is suitable for
you in light of your circumstances, knowledge, and financial resources. You
may lose all or more of your initial investment. Opinions, market data, and
recommendations are subject to change at any time.