Last updated: Wednesday, February 24, 2010
Current Yen strength has led me to put aside my bullish USDJPY bias, but as I said on Monday we could see a test of the 50-DAy SMA before a larger bullish trend begins. It is clear that broader pessimism is growing and therefore we should see continue weakness in the com-dollars, justifying a short CADJPY. The pair has already seen significant losses this week, so I would wait for a break below the 20-Day SMA at 85.39 or a safer bet may be a break below 85.00 with a target of 83.50-potential trendline support followed by 82.80-2/9 low.
