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USDJPY and Gold fakey setups, 10th February 2011

Forex Commentary:

The dollar rallied against rival currencies on Thursday after a fall in U.S. jobless claims with more gains seen against the euro on concerns about Europe’s lack of progress tackling its debt crisis.

The dollar was up for a seventh straight session against the yen, nearing a one-month high at 83.29 yen before easing to 83.21 yen, up 1.0 percent.

Sterling, meanwhile, fell as low as $1.6011 overnight after the Bank of England left interest rates at record lows despite chatter about a possible hike, though it recovered by midday in New York to trade nearly unchanged at $1.6098

Trading Setups / Chart in Focus:

USDJPY

The USDJPY came off aggressively to the upside today after the minor fakey / pin bar combo setup that we discussed in Tuesday’s member’s commentary led to a nice bull move.

Higher prices are a possibility into Friday’s close; it is also worth noting last week’s price action resulted in a weekly bullish pin bar, setting the tone for this week’s up move.

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Gold

Gold formed a minor fakey / pin bar combo setup today, the metal is showing rejection of the 8 / 21 day emas that have recently crossed higher, we also have a horizontal support area near $1350 that adds further confluence to this reversal setup.

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For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading education website.

Other Markets:

On Wall Street today the S&P 500 and Nasdaq made small gains in the last minutes of trading as Egyptian President Hosni Mubarak said he would delegate powers to the vice president.

The S&P and Nasdaq wavered in volatile late-day action as Mubarak began a speech in response to the weeks of civilian protests. Earlier in the day, as media reports spread that Mubarak might resign, equities rebounded off early lows sparked by the disappointment over Cisco.

The Dow dropped 10.60 points, or 0.09 percent, the S&P 500 added 0.99 points or 0.07 percent, and the Nasdaq added 1.38 points, or 0.05 percent.

Upcoming important economic announcements: 2/11/2011

4:30am EST: Britain – PPI Input m/m
8:30am EST: Canada – Trade Balance
8:30am EST: United States – Trade Balance
9:55am EST: United States – Prelim UoM Consumer Sentiment