Daily Forex Markets Analysis (27-28/2/2013)

Markets today have been characterized by some strengthening in EURO the GBP edged slightly lower while the JPY continued to gain some more ground. The US dollar appears to remain steady. These gains that have been observed in the EURO and JPY may be good opportunities to short them.

USDJPY (DAILY) BUY

Staying with the commentary that shorting the JPY may be a good idea I am looking at this setup.

Why BUY

-There is a clear up move that has been observed in the last 2 months

– Trend indicators are pointing Up

-Extreme indicators are pointing Oversold

– Wave indicators are correctly pointing down, as the pair is finding resistance not only at the 91.00 major psychological level but also at the 23.6% Fibonacci level. If this holds we may see a bounce back to 94.80, which is around 300 pips.

 

Note: A similar pattern appears under EURJPY but you may want to be cautious with going long EURO now.

 

Read about the Trend/Wave/Extreme system here.

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.