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US Dollar / Japanese Yen Down Trend Set to Resume (Candlestick Analysis Update)

Wednesday, 07 January 2009 22:56:38 GMT

Written by Ilya Spivak, Currency Analyst

We sold the US Dollar against the Japanese Yen as the pair broke below a triangle formation and the swing low from late October. Yesterday, we saw the pair showing the makings of Advance Block formation and suggested the down move may be ready to resume after a bounce from support at the lower boundary of a bearish channel in December. The Advance Block has now been confirmed, with the top three candles yielding an Evening Star reversal pattern. This tells us a top is in place for the moment, and we will remain short. Prices are close to our initial entry so those traders that had not entered the position initially now have a second-chance opportunity to do so.

01-07-08 JPY update

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