Rise in Dollar (05-12-2009 JPYUSD analysis)

The "incident" in Dubai has been eased and the stock markets in the globe have become more stable. We could often treat such kind of "incidents" to be some news that are "released" by some insiders to push the stock market down in order to let them buy with cheaper prices. Though what I have said cannot be officially proved (of course), we can tell this through our observations and experiences.

This week's focus is mainly on the forex. The Dollar has risen a lot due to expectations on Fed interest-rate hike. After my personal analysis, I believe this expectations would continue bring up the Dollar, especially versus Yen. Let's see the chart below:



We can see that the price breaks through the upper line of the downtrend. We have to keep an eye on it to see whether it will keep on above the channel or simply a "fake" breakthrough. Also, it breaks the 38.2% line of the fibonacci projections and would likely to go up to 50%, which is at 92.02. If it does, then it could go further more as it breaks the Ichimoku cloud and the trend is reversed and become a up-going signal.