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Tuesday, August 10, 2010
Weekly Forex Signals
Japanese Yen improving as USD takes a setback
Fundamental
The yen traded near an eight-month high against the dollar as signs the global economic recovery is slowing boosted demand for Japan’s currency as a refuge. The yen was close to the strongest in two weeks against New Zealand’s currency after Goldman Sachs Group Inc. cut its growth outlook for the U.S. and Japan, and economists said a report tomorrow will show China’s exports rose at a slower pace. The dollar was near a three-month low against the euro as traders reduced bets the Federal Reserve will raise interest rates in the next 12 months. South Korea’s won touched a two-month high.
Technical
U.S. Dollar is still in a downtrend against Japanese Yen, as we can see strong supply in the market, based on technical indicators like RSI, which is in a clear downtrend, MACD crosses the signal line downwards and Bollinger band gives us a bearish signal by closing the candle below the middle band.
