WEEKLY FOREX UPDATE: USD-JPY

The USD-JPY pair continues to trend lower as the Yen remains strong against a USD that was stable, but range-bound, throughout last Monday’s trading session.

The stronger Yen augurs risk aversion, as the Yen is sold or borrowed primarily when risk appetite is present, as the purchase of more risky and higher-yielding assets are funded by borrowing, that is, selling, Yen, due to its low 0.10% Central Bank rate.

Bullish equities movement is best confirmed when Yen is sold against the USD and the EUR.

The Falling Wedge pattern on the USD-JPY’s daily chart shows that the Bearishness over the last 40 candles has formed a strong downtrend; this is confirmed by Autochartist’s seven-bar Initial Trend reading. Any reading greater than 6 bars indicates a trending market. (See Chart Below)

The current push South towards support at the Wedge pattern’s bottom line shows that prices are likely to test the 2 prior lows at 86.97 and 87.02.

Read more

World Market Pulse Forex Update: Analyzing Sterling’s GDP Boost

The GBP received a significant boost as it posted its biggest one day gain against a basket of currencies in 3 months after the surprise rise in UK Q3 GDP to 0.8% in addition to a ratings upgrade from Standard and Poors to a “stable” outlook bringing them into line with their agency peers, Fitch and Moody. 

An Overview Of UK GDP Figures: U.K. GDP came in stronger than expected, up 0.8% q/q and 2.8% y/y in Q3, compared to the consensus forecasts for 0.4% and 2.4% respectively. This was the highest annual growth rate since Q3 of 2007. Service sector growth came in surprisingly strong, up 0.6% q/q, same as in Q2, while industrial production growth was 0.6%, after 1.0% in Q2. Construction sector output rose 4.0% q/q, after rising 9.5% in Q2, when it rebounded after weather related weakness in Q1 of 2010.

Read more

FXCast, Oanda Release New Mobile Trading Platforms; FXCM Restructures

1. FXcast Pro Mobile

Good news for FXcast trading junkies out there. There's no more need to be tethered to your PC or laptop! The company just launched FXcast Pro Mobile and FXcast Pro Mobile Smartphone Edition (SE). The apps will allow you to access your accounts and trade anytime and from anywhere in the world.

FXcast Pro Mobile is designed to run on pocket PCs with Windows Mobile OS while FXcast Pro Mobile (SE) is meant for smartphones with MS Windows Mobile. Not only do the apps allow full management of trade accounts, but they also provide you with the latest market news and charts with about 30technical indicators. Fundamental and technical analysis on the go, anyone?

Read more

Sick and tired of "sanction of the victim"

Is it a stretch to say the Chinese wish to destroy the United States? Maybe! But it isn’t a stretch to say that China wants to become the primary global economic and military power in the world. It is why the G-20 was so fresh with irony. We have China and Germany teaming together for the “sanction of the victim” -- the United States. Even though it is US liquidity that is keeping both their economies afloat, now that Germany has become attached at the Chinese hip.

You know what they say boys: Be careful what you wish for ... it may come true! I guess it doesn’t translate well into either Chinese or German.

Bashed, indeed, Mr. Obama was at the G-20; and for a lot of good reasons. But, the reality is this problem in the global economy is first and foremost a global imbalance problem with China and Germany (to a lesser degree) as the two spoiled children creating a problem they fail to admit.

German Finance Minister Schauble, tell us again how that single currency regime, structured primarily by your country to your own benefit by creating a captive market for your industrialists knowing all too well by locking the other countries into a system whereby they cannot adjust to compete with Germany’s efficiencies, i.e. the straightjacket of the euro, is working for you?

Read more

Cross-Eyeing: Fib Play on GBP/JPY - PT1 Hit

We saw some pretty wild trading last Friday, as the currency pairs were all over the place. Once the London session opened, we saw the pound falling across the charts. Guppy dropped by 150 pips over the span of 3-hours and it looked like it was headed for new lows.

Luckily for me, the wave of risk aversion was short lived as the bulls came back in force. Taking a look at the charts, we can see that the 61.8% Fib held pretty nicely. This also lined up nicely with a major rising trend line. I suppose many traders were eyeing this level.

In any case, the pound remained resilient and midway through the New York session, I hit my first take profit. I moved my stop to break-even, giving me a risk-free trade now. Now, I know I said I was gonna let my remaining position ride, but it seems that the pair has formed a channel on a longer time frame and is now encountering resistance at the top. I may have to cut this short and find a way to re-enter if it seems like bullish run is losing steam.

Read more

Risk Aversion and the Dollar-Dow Connection

If yesterday's Dow Jones pullback could have been used as an indication to the risk aversion seen today, then I feel traders would have much more aggressively shorted the EUR/USD and the AUD/USD earlier in the day and as Europe and the U.K. opened. I don't think it was that obvious and the evidence can be seen in the sharp sell-off in equities today. In my opinion, the dollar is the big beneficiary of the equities weakness as dollar bulls are finally unconvincingly trading above not only the October highs but also 79.00 - the major psychological level that we have not been above since September 28.

With those notable about the pullback in the Dow Jones is the fact, I believe, that in just a single session uptrend on the daily time frame may be broken as well as the 11000 level. Continued risk aversion could propel the U.S. Dollar Index towards the 80.00 decade level. I feel the challenge is not in recognizing the dollar's momentum, but in determining whether or not in uptrend will ensue. This is where transitional markets can be account killers.

Read more

Benefits of Automated Forex Trading

Forex trading is today’s largest financial market, without any doubts.. In fact, $3 trillion are traded in the Forex market daily on a global scale. Because Forex trading is mostly based on speculation, fluctuations in the world’s currencies determine whether profits are made – or whether traders lose money. Due to the sizable profits that can be had in the Forex trade, many investors are attracted to the market. The same holds true for novice Forex traders, and to make it much simpler, there are automatic Forex trading systems that lessen the troubles that novice traders may have when entering the market for the first time.

An automatic Forex trading system provisions you with a pre-programmed strategy that will keep track of your progress in the Forex market – and all of this will take place in real time. Automated Forex software uses what is known as an EA – or expert adviser – and a collection of indicators that interpret the complexities of the Forex trade – so much so, that they will signal you the best moment in time to enter a trade, and of course in which direction..

One of the best advantages of Forex automated software is the fact that it greatly reduces the amount of time needed to learn the basics of Forex. Automated Forex software minimizes the amount of time you need to learn the ins and outs of Forex market. Because of this, you do not need to sit in front of your monitor all day long, watching graphs and trying to catch market move, because your software will constantly be monitoring the markets for you, 24 hours a day.

Read more

CADJPY Break Out

I hope you enjoyed your weekend and spent some time preparing for the trading week ahead.

The CADJPY recently passed the VI after convrgence of MACD on the daily time frame. This has now been added to my watchlist and for those new traders looking for an entry, go down to a smaller time frame to establish a low risk position but as always beware the traders remorse.

Todays forex trends chart taken from the Dynamic Trader Trend Analyser is below for your guidance.

Read more

New Regulations

As most of you will be aware the new NFA regulations have come into force and you may see some new additions on your trading account on Sunday night (GMT).

Those of you who hedge on your currency accounts will no longer be able to continue this practice. The NFA FIFO rule that is in place (for US accounts only)  is to prevent the ability to hedge. If you open multiple position on a currency, until now most of you (depending on broker) have been able to close whichever position you wanted and in whatever order you wanted. The FIFO rule (first in first out) means you can now close only the first position first and then the second position second. In other words, the order in which you opened your multiple positions on that currency is the order you will have to close them.

Also, if you take out a long position on a currency lets say using our Double Deviation strategy and you decide you want to take out a short positon on that same currency using our 3D strategy, then in effect what will happen is your 3D position will close your Double Deviation position. The short position will not open because a long position is already in play, so instead now the short position will actually close all or part of the original long position.

Read more

Thinking Small Will Lead You to Big Profits

We often take technological change for granted. Many of us would not be here to read this if it weren’t for new medical breakthroughs. As a cancer survivor, I know I wouldn’t.

We can see the change in other fields as well. Computing power and software that were once only the musings of science fiction writers are now commodities. Intel founder Gordon Moore first described this technological ramping-up back in the 1960s.

Moore noticed an industry wide trend in semiconductor fabrication. Observing a rate of transistor density in integrated circuits that was doubling every 24 months, he also noted that the cost per transistor was halving as well. Extrapolating upon this trend, Moore predicted it would continue well into the future. Now famously known as “Moore’s Law,” it has proven prophetic.

I’d like to point out, however, that the principle of technological improvement through increasing smallness extends to a much larger field than semiconductors. Tininess is touching on many industries.

We are witnessing a growing ability to precisely manipulate and assemble materials at a scale measured in nanometers. As you know, a nanometer is a billionth of a meter, and comes from the Greek root for “dwarf.”

Read more

The Single Most Important Investment Decision of the Coming Decade

Imagine a world where a cup of coffee costs $10… and the following year, it costs $12. Imagine nearly everything starts going up in price, year after year. Where I live, folks call that inflation.

Sound far-fetched? Actually, it’s already started.

Let’s start by looking at what’s happening to food prices. Corn prices are up 44% in the past year. Soybeans are up 22%; wheat is up 23%. Even sugar is up 24%. It’s pretty clear something is going on here.

Because of those rising commodity costs, food companies are jacking up their prices to cope. As a result, expect to pay more for Big Macs, boxes of cereal and baking mixes, to name just a few things.

Two heavyweights have already weighed in. McDonald’s said it would raise prices in the U.S. for the first time in more than a year. General Mills, which makes Cheerios and Wheaties, said it will raise its prices for cereal and baking goods.

There are many more examples, but these two firms are bellwethers. More will follow in their footsteps. As they raise prices, inflation, as we commonly speak of it, will be here.

Read more

Chart Smarts: Know When to Sell Your Stocks

When you trade penny stocks, it’s important to confidently make buy and sell decisions based on facts, not fear.

You won’t be able to time every trade perfectly — no one can. Instead, you need to shoot for consistency. That means using all available tools to decide whether a stock is breaking its uptrend or merely consolidating for its next leg up. In just a minute, I’ll explain how to decide when to hold for better returns — and how to decide when to sell — using a couple of key indicators.

First, it’s important to look at the different types of uptrends. Any stock that runs straight up without any consolidation at all can be exciting. But it can be a nerve-racking experience if you’re looking to hold for more than one or two days. That’s why most traders will sell these quick runners at the first sign of weakness. Shares can fall hard and fast. No one wants to be left holding the bag.

Read more

Contraction by $1.39 billion seen in India's forex kitty

A fall in India's foreign exchange reserves was noticed to $251.702 billion as on 1 May from $253.091billion a week earlier. This made a drop of $1.39 billion.

It was confirmed by Reserve Bank of India in its weekly statistical supplement on Friday that changes in foreign currencyassets, expressed in dollar terms, include the effect of appreciation or depreciation of othercurrencies held in its reserves such as the euro, pound sterling and yen. It should be noted that India's reserve tranche position in the International Monetary Fund is included in foreign exchange reserves. It was specified by RBI that the fall mainly came to scene due to revaluation of currencies and a decrease in value of gold assets held by RBI.

A decline by $346 million to $9.23 billion was witnessed in gold reserves since the gold price declined in the week. It should be noted that during the week where special drawing rights remained static, the reserve position with the IMF also remained unchanged.

Read more

NEW AMAZING WAY TO EARN WITH EASE

Make continuous $2 every minute into your Liberty Reserve. Making Unending cool cash within minute!
Dear Friend.Are you ready to start making unending cool cash into your liberty reserve account today?Are you an online wealth seeker? Perhaps you have spent so much money buying junk ebooks that have never worked for you. Do not worry!
There is hope for you today as I am about to show you a secret money making system FREE that generated me $50 into my liberty reserve within 24 hours.This is very easy to do. And you will never regret it. Just keep reading.

Introducing...The Latest Money Making System To Help you Generate Up to $800 Monthly Into Your Liberty Reserve Account!I am ready to reveal to you FREE how I am now making up to $800 monthly generated into my Liberty reserve. Just make sure you follow the below simple step by step guide. This is what some people will package to you and sell for N5,000 . But I won't do that cos am already making money from it and am sharing everything bit by bit here for FREE!The only requirement is for you to have a Liberty reserve account, if you don't have one just head over to
How Do I Fund My Liberty Reserve? After Opening your account you'll need to fund it. There are some reputable sites where you can fund your Liberty Reserve account.Visit this exchanger
http://www.goldnairaexhange.com

Read more

Forex Trading:How to Resolve the Appreciation Pressure

Forex Trading:The situation in the second half of year is remained to be seen, the government has taken the precautions to resolve the RMB appreciation pressure.

On 27^th August, the State Administration of Foreign Exchange (forex) published the notice that to keep the export income abroad.

The foreign exchange (forex) analysts hold that this measure can reduce the hedge pressure of the central bank, so does the RMB appreciation pressure.

Read more