What’s Up, What’s Down: Can the Yen Rally Back?

Comments for Monday, September 20, 2010

Looking Ahead to Today by Reflecting Back at Friday’s Price Action

Futures and options trading is speculative in nature and involves substantial risk of loss.  Futures and options trading is not suitable for all investors.


Higher closes last Friday  for the Aussie Dollar, Swiss Franc, Japanese Yen and dollar index while lower for the Euro Fx, Canadian Dollar and British pound. The euro made its highest high since August 11th but still is in a uptrend along with the franc. The yen closed two ticks higher but was still unable to muster any kind of a rally since Japan’s bank intervention last week. In my experience, currency intervention almost never works. So please call me if you are interested in my plan of attack to take advantage what history tells me will be a rally back in the yen! Still, the yen was technically hurt by last week’s action and needs to hold the 11600 area. The Canadian Dollar made its best high in a week before settling lower with a huge trading range continuing its sideways pattern since the beginning of May. Also this caused a failed bull flag which should be lower prices in the near term. The pound made its best high since August 11th before closing lower in reversal type action. The Aussie Dollar made a new CONTRACT HIGH settling higher along with the dollar index that made its lowest low since August 9th before closing higher in reversal type action. BUY SIGNALS FOR THE EURO FX, SWISS FRANC, AUSSIE DOLLAR, AND JAPANESE YEN. SELL SIGNALS FOR BRITISH POUND AND DOLLAR INDEX. CALL FOR DETAILS!

Japanese Yen Chart

Canadian Dollar Gas Chart

US Dollar Chart

Is open-outcry going away? Do you know exactly how much futures trading is executed on electronic platforms like Globex?  Download my Trading Volume report at https://www.zaner.com/3.0/ralexVolume.asp  (or copy & paste this link into your browser).

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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