Forex Go!

The EURJPY fakey setup that we discussed in our commentary from 9/28 has pushed past resistance near 114.75. This price action setup provided keen traders a solid risk reward of 1:2 and possibly more should prices continue to push higher next week.

Price closed just above the previous resistance near 114.75, a solid break above this level next week will likely see a push higher and this resistance level flip to support. Trader’s could then watch this level for possible long setups to develop into next week.

Note also the pin bar price action strategy that formed yesterday in the EURJPY which showed clear rejection of the 8 day moving average and was in-line with the uptrend, this pin bar setup gave a further boost to today’s rally through overhead resistance.

For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex price action trading course.

Commentary:

The U.S. dollar weakened again today and fell to a 6-month low against the euro after a Federal Reserve official in the U.S. said growth has been disappointing, this strengthened the case for quantitative easing, which essentially means the Fed might have to inject more money into the U.S. economy.

Adding further problems to the safe haven U.S. dollar was a report that came out which showed Chinese manufacturing was stronger than expected which worked to stoke the fires of more risk appetite.

The euro rose to a high of 1.3784, its highest level since the middle of March against the greenback.

The Dow rose 41.63 points, or 0.39 percent, the S&P 500 rose 5.04 points, or 0.44 percent, and the Nasdaq added 2.13 points, or 0.09 percent.

Similar Posts:

• Forex Commentary: USDJPY and EURJPY price action 9-7-10
• Forex Commentary: GBPJPY inside bar update and GBPUSD breakout 9-25-10
• EURUSD price action, 22nd January 2011
• Forex Commentary: Inside bar breakout madness, 2nd March 2011
• GBPUSD fakey-pin bar recap, 12th April 2011