Trade Setups Commentary: USDJPY and Dow Update – 7th December 2012

AppId is over the quota
AppId is over the quota

Trading Setups / Chart in Focus:

USDJPY – Dollar/yen consolidates after surge higher

The USDJPY has been consolidating recently in a pretty tight range after its explosion higher. We can see the range is between about 82.80 – 81.70 and traders can look for price action buy signals forming near the support of the range at 81.70 if price rotates lower next week. The underlying trend is still up and so we retain our bullish bias on this market even though right now we are moving sideways and consolidating. A close below support at 81.70 would flatten our bullish bias.


DJ30 – Dow Futures Update

The Dow futures market has moved significantly higher after forming a bullish reversal pin bar strategy off support near 12,450 that we first discussed in our commentary from November 16th. As of today, we can see the market is at 13,146 after a brief stall at 12,950, demonstrating the power of a pin bar signal formed at a key support level. Going forward, momentum is clearly bullish in this market and traders could watch for rotations back to support for price action buy signals, the next key resistance is seen near 13,250.


Check out my latest trading lesson: 6 Dangerous Misconceptions Of Forex Trading

Christmas Special Promotion- For December I’m offering a Special Discount on Lifetime membership to my Forex Course, Live Trade Setups Forum, Daily Trade Setups Newsletter, Email support line & more. For more info visit the Forex Course Page Here.

Forex Commentary:

In the currency markets today, the U.S. dollar gained ground on the euro on the back of a stronger than expected November U.S. jobs report.

The greenback lost ground to the Canadian dollar but was higher to unchanged against the other majors.

Other Markets:

In the U.S. markets today, stocks ended the day mostly higher on the back of better than expected November jobs data that worked to offset a fall in a consumer sentiment report.

The Dow gained 81.09 points, or 0.6%, the S&P 500 added 4.13 points, or 0.3% and the Nasdaq lost 11.23 points, or 0.4%.

Upcoming important economic announcements (New York time):


Tentative: China – Trade Balance


12:15pm EST: Britain – BOE Gov King Speaks