The dollar made some good gains against the Yen again with the CPI report coming out better than expected. The Yen is headed for another tumble as the USD/JPY looks poised to make another run at 122.00

Chart Analysis:

EUR/USD

The Euro has been a pain in the butt the past couple of days as it just sits steady at around 3030. Yesterday looked like the pair was going to drop, but today's daily candle, which formed a doji, makes an even more convincing case that we'll see it fall soon. Daily stochastics are still in overbought territory but seem to be headed down and the pair has faced tough resistance around the 3150 area. I'm going to short this pair again but this time I'm going to go for a larger target with a wider stop. This means that I may be holding this trade for more than a day.

Trade Idea:

Short at market (3138); Stop Loss= 3190; Target= 3080; Target 2= 3050

GBP/USD

Well the Cable did end up making a run towards 9600 but it didn't quite make it. We've been seeing large swings in this pair throughout the days but it always fails to make any significant gains. Daily stochastics are trending up slightly and 4hr stochastics have just crossed up which leads me to believe that we haven't seen the end of the Sterling rally yet. I am expecting this pair to make another run towards 9600 but I think this time it will actually get there.

USD/CHF

Well the Swissy started the day looking like it was going to slice through its triple moving average resistance like it was a hot knife on butter. However, just like yesterday, the pair could sustain the rally and ended up falling towards the end of the day. Yesterday the pair ended up closing right at its 200 SMA on the daily chart, and today it's made a little more progress and has closed right at its 100 SMA on the daily chart. Daily stochastics are still trending up nicely and I still see potential for some good upward movement. I'd like to buy this pair if it can break 2400 and set a target for 2450. I will place my stop below the the triple moving average area so that my trade is protected. This is another "larger than normal" trade for me so this one could last more than a day.

Trade Idea:

Buy at 2400; Stop Loss= 2350; Target= 2450

USD/JPY

Woowee! This pair has really been moving! Once again the Yen is in danger of falling to 122.00 against the buck. Daily stochastics are trending up nicely and have plenty of room before reaching overbought territory. I think this pair will continue to move up to at least 122.00 which is a big psychological resistance area. Once it gets there, we'll either see another bounce back down or one heck of a rally!