Nov 132008
 

Its been a while since I posted a Yen chart. We have been running into some selling at 96.23. Considering that the low seen earlier today was 94.50, even this is a strong move. Part of the credit for the recovery goes to the Japanese Finance Minister who said that rapid forex moves was undesirable for economy. and there is a need to avoid rapid forex moves at all cost. Now we all know that this market is not going to turn around unless all the G7 central banks show up in concert (and even that will work only if the market is spent on one side). Yet, some knee-jerk reaction is to be expected, and if we break the resistance at 96.23 in New York today, maybe we will get a move to 96.64. When we get there, we should try and sell some dollars with a stop above 96.74. That is a very close stop, and we could see both the sell and stop-loss order done within seconds of each other! But then we do have a resistance at 96.69 and if one wants a really, really close stop, this is it! Enjoy.

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