Wednesday, August 26, 2009

Yen Strengthens - GBP/JPY, EUR/JPY And USD/JPY All Turn Bearish

We've seen some very interesting developments on the Japanese yen pairs today because the strength of the yen has pushed the GBP/JPY, EUR/JPY and USD/JPY into new bearish trends, at least according to the Supertrend indicator.

To put this into context, the Supertrend indicator has been green (ie bullish) since February 6th for the GBP/JPY pair, May 8th for the EUR/JPY pair and June 5th 2009 for the USD/JPY pair. So this change of trend is clearly significant and could well point to further weakness, particularly as each of these pairs is now trading below their respective 200 day EMA (exponential moving average).

All of this means that when trading my main 4 hour trading strategy, according to my own rules I shall only be looking for short positions for each of these three pairs, at least until the daily Supertrend turns green again.

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