FOREXYARD: Forex News Blog

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GBP/JPY Makes an Attempt to Break Higher Posted: 25 Oct 2010 03:24 AM PDT Over the last month, the British poundhas been steadily losing ground to the Japanese yen. ‎The yen, widely considered to be a safe-haven currency, has been making gains across the ‎board as investors continue to shy away from risk taking. Since September 16th, the ‎GBP/JPY pair has gone down over 200 pips. As we will demonstrate through a number ‎of technical indicators, the pair may be due for an upward correction.‎ We will be looking at the daily chart for GBP/JPY cross. The technical indicators we will ‎use are the, Bollinger Bands, Stochastic Slow and the Relative Strength Index (RSI).‎ Point 1: Traders will notice the bullish cross formed below the support line on the ‎Stochastic Slow. Typically when a cross, such as the one shown here forms, an upward ‎correction takes place.‎ Point 2: Finally, in what may be our strongest signal yet of an impending bullish move, ‎the RSI is floating in oversold territory, and has been for some time. Traders can take this ‎as a sign that the pair will see an upward correction in the very near future.‎ Point 3: The pair is currently trading along the lower band, indicating that an upward ‎correction is due to take place. Furthermore, the Bollinger Bands are beginning to widen, ‎spreading farther apart. This typically means that a price shift is likely to take place.‎

Bernanke Speech to Impact Dollar Posted: 25 Oct 2010 01:57 AM PDT Last week, the US dollar saw some heavy movement against its main currency rivals. Risk aversion gave the greenback a significant boost against the euro during the middle of the week, but failed to sustain its gains toward week’s end. This week promises to be just as volatile, starting today, as a number of significant US news is scheduled to take place. Here is a roundup of the day’s main events: 12:30 GMT: USD Fed Chairman Bernanke Speaks A speech from the Fed Chairman typically leads to a large amount of market volatility. Given the heavy fluctuations the dollar has seen over the last several weeks, today’s speech could carry added significance. Traders will want to watch out for any mention of the long rumored plan for quantitative easing, scheduled to take place as early as next month. Should Bernanke allude to the quantitative easing measures, the dollar is likely to fall in afternoon trading. 14:00 GMT: USD Existing Home Sales Along with unemployment, housing is one of the main issues that have prevented the US economy from fully recovering from the global economic crisis. Today’s Existing Home Sales figure will give investors an indication regarding the direction the US is heading. Analysts are forecasting a figure of around 4.29M today, which if true, would mark a slight increase over last month’s figure of 4.13M. The dollar will likely see short term gains against its main currency rivals, should the report come in as predicted. That being said, a lower than forecasted result may cause investors to sell off the greenback, in which case the US currency would fall.

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