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USDJPY Large Consolidation

Thu, Sep 25 2008, 10:50 GMT
by Forex Hound Analysis Team

ForexHound.com


USDJPY has been trading inside a range for a couple of weeks, the area is full of former support and resistance levels and lack of sway on either part of the Pacific didn't help much; we do keep an eye out for the support levels as we are trading close to the lower side of the range  but the 104.50/105 levels seem pretty far at the moment. This could be the build up to a much larger move and the bullish bias might prevail but until there are some clear signs of this happening one should trade carefully on the intra day time frames, and hopefully those trades can turn into bigger ones.

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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