Forex Videos

The dollar has moved higher against the yen after Friday’s very strong US jobs report, but Alex Joyner from Faraday Research still believes now could be the time to short the pair. Here’s why.
Alex Joyner: Today we are looking at opportunities to short the pair. Looking at the daily chart we can see that we are moving sideways for most of November and December and USD/JPY moved significantly lower from a key level of resistance. This marks the start of a long term downtrend of this pair as global risk appetite decreases sorrounding the Chinese economy. This sell off continued in the start of New Year and still has plenty of strong downward momentum. The hourly chart shows that it has established a long term descending channel and after Friday's Non Farm positive data price action moved higher from the bottom of the channel. Given the ongoing problems in China it won't be long before the demand for yen increases once again and the strong long term downtrend resumes. We will be looking for bearish price action signals towards the top of the channel for a short trade setting a stoploss above the channel.