Quite a clear out in the pair for the last couple of days. As I pointed out in the bonds post, all the talk from Japan about life insurance companies seems to be coming out in those bonds rather than the currency. It is a slow process though and not something you can trade instantly on as they won’t just be turning up with truck loads of cash and hoovering up. They’ll be making strategies and plans and so on.
The good news, if you can call it that, is that some levels have come into play. On the H4 chart we’re flirting with the 55 ma. The level is currently keeping buyers and sellers evenly matched and the market is taking a breath before deciding which way it want’s to go. Bids at 98.50 and mild support at 98.45 should also give bears a decision as to whether they want to take it lower. Below here we have a rising trendline from April 4th through April 16th lows coming in at the 98 mark.
Coming down to the H1 chart we can see that there’s been no signs of a bounce since breaking 99 and the short term trend is down. Since the overnight falls the pair has settled somewhat inbetween the 100 and 200 ma’s. With a raft of US data out later we could find ourselves sticking around these levels until we are given a reason to move.