Thursday, May 08, 2008

Japanese Yen Update

I've been bullish on the Japanese Yen for the past few weeks and I finally got long today.

If you look at the above chart of the Japanese Yen you will see several technical factors coming together which in my opinion is bullish.

The trend in the Yen is up therefore I am looking to buy on dips. How do I know the trend is up? Well if you look at the basic swings you will see a series of higher lows and higher highs which can only mean one thing, the TREND as of right now is UP.

Notice how the yen pulled back to a support level and held. In my opinion that is very bullish when you see support hold in an uptrend.

Notice how the yen has broken its short-term down trendline. That is another indication that the Yen may be ready to go higher.

Finally if you look in the lower pane you will see that the MACD indicator is just about to cross up and give a buy signal.

So as you can see there are several technical indicators coming together which suggests that the Japanese Yen may ready to go higher.

I'm long the Yen and my protective stop is right below this week's lows.


Anonymous said...

Hello Kevin,
I found your blog very interesting and fully of good information. I am just a novice but I am learning. My question is related to your comments. When you say "I am LONG". Do you mean your intention is to purchase the stock and keep it (until you reach your goal) or you went LONG with options. I apologize for the low level of my question but I am curious. Thank you again for your blog. Remi

Kevin said...

Hi Remi,

No need to apologize...everything is new to all of us at some point.

When I say I am long what I mean is I bought the stock.

For example if someone says they are long the stock at 33, that means they bought the stock at 33.
Long is simply another word for bought.

Anonymous said...

Thank you. If I may another question, how do you scan for interesting charts? Do you use a list of tickers and you go through the list? This is something that I have difficulties with. There are so many tickers to choose from and this is not easy to scan a large number of them. I try my best to locate patterns like symetrical triangles or double top/bottom...but I may not use the most efficient method. Would you mind elaborating your method (if you could)? Thank you. Remi

Kevin said...

Thats a tough question to answer.. It would take too long to explain it here...My advice is to start with the big picture... What I do is scan the major indices, then the major groups, then the stocks within the groups. Trying to scan every stock out there can be overwhelming...Just keep it simple and focus on the big picture and the stocks that are active and in play.

madhatter said...

curious are you playing this through actual forex or through FXY?

great blog by the way

Kevin said...



This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
Technorati Profile Finance Blogs - Blog Top Sites