Normal 0 false false false USD/JPY
Daily graph: http://www.real-forex.com/charts-daily/November2010/JPY_DAILY_041110.JPG
Four sessions ago, a vain breach of the resistance 80.42 occurred. However, the following 3 sessions, also uptrend oriented, were quite weak relative to the previous ones. This point describes a weakening of the bulls relatives to the bears. Due to this distribution of the power, we anticipate a reversing that may occur before the pair is reaching the resistance of 81.82. This could open the opportunity to go “Short”. The confirmation of the previous assumption should appear on a One-Hour chart of the pair by the identification of a decreasing configuration.
One-Hour graph: http://www.real-forex.com/charts-daily/November2010/JPY_1H_041110.JPG
The required configuration should appear when the support of 80.9 will be crossed downward. Following is one way to catch the trade:
· “Limit” order on “Short” position 10 pips below the support mentioned earlier, meaning 80.80.
· “Stop loss” order on the last high occurred at 81.58.
· 1st degree for “Take Profit” on the next support, meaning 80.59.
Daily graph: http://www.real-forex.com/charts-daily/November2010/CAD_DAILY_041110.JPG
During the last session, the pair continued to decrease in a very interesting way. The downtrend started about 3 sessions ago, after a long navigation, and the pair has already broken the support 1.0180.In addition, during the last session, the pair broke the support of 1.006.
Actually, the pair is on its way to the next support which is 0.9979. Its behavior when this support will be reached will determine the future trend and, obviously, the most adapted entry orders:
– A vain breach of the support may suggest a reversing trend, revealing a new uptrend. The opportunity to go “Long” should be open is that case.
– If the pair is crossing and breaking the support, keeping the current downtrend, in this case, we suggest waiting for a small technical correction and only then go “Short” with the trend.
Have a nice day!