HOLIDAY NOTE

We are closing for the year 2009, market begins January 4, 2010!

Thank you.

James

AFTERNOON MARKET UPDATE

Hello,

The GBPJPY is wrapped in a range-bound triangle and I suggest a NO-Trade until we have a good break-out and volatility to make a trade. THe trend is still Bearish

EURUSD broke my BULLISH trendline and looking forward to a recovery in the medium term. I still believe in a NO-Trade till the Resistant line is convincingly turned to a support line. The trend is still bearish

GBPUSD remain bearish following the last bounce from my resistant line and a good bounce from the upper band of the bollinger band. We need a good retracement to the upside before deciding a further down move.

The USDCAD responded sharply to the over-bought region after several hours of a range-bound price action to touch the 4hrs support line. It was a nice DIP. The trend is still bearish

USDJPY - NEXT WATCH

The USDJPY pair may be in for a dip as the 4hr candle closes below the 20sma with daily stoch in good position for us to think bearish.

A close below 89.36 with stoploss around the swing high 90.46 and tp at levels of fibonacci 88.49; 87.78; 87.08

Lets watch and i will be welcoming comments.

James

GBP/JPY - IN A SELL MOOD

Today will begin our first weekly long term analysis of currency pair. The pair in focus if GBPJPY.

The weekly timeframe shows a clear bearish trend with price below the 20sma, the Daily timeframe getting over-bought and 4hrs candle closes below the 20sma.

I suggest a SHORT trade at 144.94 with a stoploss at 147.04 and take profit at 140.90, trailing every 100pips is a good idea.

At the moment my trade triggered and waiting for event to unfold.

I will also welcome comments as we ride the trade.

Enjoy.