FOREX TRADERS

[ultimatepick]

USD/JPY Daily Chart from BABYPIPS.COM - Monday, April 24
http://www.babypips.com/forex-analysis/forex-chart-analysis.html

Wow! This pair looked like it just dropped of a cliff. The previous support of 115.50 along with its purple 200 SMA failed to hold as support. It’s looking for bearish. If you look at Stochastic, it’s showing us this pair is “oversold” and is actually “turning over” with its lines crossing over. I’m looking for a slight upward correction, probably retesting its old support, before the pair resumes it move down. Thankfully my trade didn’t trigger last night as I was wrong.

This pair could also experience a huge rally due to fundamental factors. Asian countries hate it when the dollar weakens against their local currencies because that means their goods become more expensive and foreign countries like the US will buy less. Asian countries also compete against each other so if the yen strengthens against the dollar, the US importers will buy from another Asian country where the dollar is stronger. Japan, off course, doesn’t like this, so they will purposely keep their currency weak in order to compete with the other countries. From what I’ve read, 15.00 is an important level because anything lower than that, then the Japanese exporters start hurting. So we might see a comment or two in the near future from Japanese officials who will try to suppress this current appreciation. This is just one of many reasons why I discourage totally relying 100% on technical analysis.

It really is WAAAAAYYYYYY oversold on the daily.
What a battle this is shaping up to be!
The WWIII of Forex if I ever saw one!
Asia VS USA!
Who will win?

The USD REALLY needs to depriciate to get out of the debt situation they are in! Do you think the JAPS are gonna let them as they did in the 1980's ?