Yup! Call me' Samurai Daddy' from now on as I give you daily updates on my forex outlook based on the Japanese Candlestick charts.Samurai Daddy will be your daily trading companion and I will share with you my insights, opinions, and trading strategies (free o charge). For those, who wants personalized trading advice, or wants my help to get out of nasty trading situations, please feel free to use the yahoo messenger at the side bar of this blog. Don't worry, the exchange of instant messages are visible only to the user and me so much unlike the other online chatting platforms. So, you can discuss trading issues with Samurai Daddy confidentialy using Yahoo Messenger. I will look forward to having confidential chats wth you soon. Just catch me online!
Here now is my latest update:
The monthly candlestick chart has so far maintained its dollar-bullish bias. The 'Bullish Ladder Bottom' reversal pattern is turning out true to form for the USDJPY with the February Candle emerging out to be the confirmation candle.
The daily USDJPY candlestick chart is also reflecting this bullish bias. So far, the price has remained above the 93.55 level which is our reference point to confirm the reversal pattern. USDJPY just have to close at or above this level by the end of February to maintain a dolar-bullish outlook. USDJPY is set to test the 95.46 level which is the next consolidation area and a breakof this warrants a test of the 97.00 area and on to its ultimate reversal objective of 99.86. Current fundamentals are favoring this scenario.
Even the EURUSD monthly candlestick is showing a slight bullish-dollar outlook wth the January candle forming a bearish dark cloud cover by the January, 2009 candle which significantly breached the midpoint of the December, 2008 upward candle. EURUSD is consolidating at the current levels but has not shown any attempt to pull down the dollar once more. Samurai Daddy still favors a dollar bullish bias with a break of the 1.27 level paving the way for are-test of 1.20.
The USDCHF monthly candlestick chart is also confirming the market's slightly dollar-bullish bias. The January candle has formed a bullish piercing pattern and the February candle needs to confirm this. USDCHF may enter a consolidation phase though, as the GBPUSD current levels may stall further declines of the European currencies. GBP has continually declined against the dollar since August, 2008. It seems to have reached equilibrium at the current levels and in the process has stalled the dollar's rise against the Euro and CHF. The market is looking for fresh fundamentals to push the dollar higher against the European currencies.
Over-all, however, Samurai Daddy maintains a strong dollar bullish outlook, specially for the Japanese Yen which I am expecting to knock at the 100.00 level in the near term.