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Dollar/yen Heading to Short Term Technical Buy Signal

Posted by WorldWideMarkets . on Oct 14, 2013 3:15:00 AM

After bouncing off the 200-day simple  moving average last week, currently at 96.87, dollar/yen is now looking for a sustained trading break above the 100-day SMA at 98.54.

Dollar/yen now at 98.23, with the session peak at 98.55 and on the cusp of a near-term technical buy signal with the 12- and 26-day MACD at -0.30 and about to rise above the nine-day signal line also at -0.30.

Support seems clear at the 200-day SMA for now with near term resistance about 100.

It was only a few months ago, the dollar looked set to climb to 105 but after rising to 103.71 it failed to go any higher. That proves there are no guarantees in FX investing as momentum seemed set for the advance to 105.

The dollar will remain weak for the quarter but expect it to rally after a debt ceiling deal in Congress and the reopening of government. Perhaps in the new year, the dollar could once again be looking to 105 as investors price in the end to QE under Yellen’s Fed yen


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