Last updated: Monday, February 22, 2010
A break back above the 20-Day SMA at 90.04 inspired a long USDJPY trade which has been profitable as dollar support was generated by the Fed raising the discount rate. A failed attempt to break above the 200-Day SMA has led me to take some profits, as the FOMC is expected to try and temper interest rate expectations by reiterating their commitment to keeping rates on hold for the “foreseeable future”. A break above the 200-Day SMA would justify additional long positions but a test of support at 90.85-50 Day SMA may come first. The longer-term trend line remain lower but a break 93.75-1/11 high could signal the beginning of a extended bullish trend.
