Yen index as we wait for NFP

The second most important currency index is the Japanese yen and moving to the daily chart, the price action here is more laboured and also reflects the indecision created by recent political events in Japan with the snap election now on the horizon.

From a technical perspective, late September and early October have seen the index trading in a congestion phase, building a ceiling of resistance in the 7690 area, coupled with a gently rising floor of support and indeed this would seem to suggest a degree of bullish sentiment for the currency. Indeed the index followed a similar pattern in late July and early August with the index rallying strongly from the congestion phase in this area and moving back to test the 8000 area, and as such we could be seeing a repeat provided the index moves firmly through the 7700 level.

By Anna Coulling

About Anna 1030 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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