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09/04/2014: I have just bought USD/JPY @101.957 (Medium Term Trade)

I have just bought Dollar/Yen as a medium term trade basis (time horizon between a week and a month)

I believe that the big volume on yesterday’s sell-off was a selling climax. Also the sell-off bounced off the support of the rising 144 day moving average almost to the tick at 101.52 before rallying today. I also expect the support of the 14 month uptrend (currently around 101.36) to continue to hold.

Ultimately I see this as just another retreat towards the lows of a trading range and expect there to be a rally back towards into the 103/104 region in due course. I am expecting a hawkish tone from the Fed tonight which could begin to drive the move back higher once more.

I have placed a larger stop than normal at 100.96 (100 pips) which gives a bit of room under the key March low at 101.17, as I believe that the resistance of last Friday’s high at 104.12 will be retested in due course.

USDJPY   09042014

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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.