The Yen takes the Dollar for a 200 pip ride!

Recapping the Majors

EUR/USD– The Euro made a slight comeback today after it took a major loss yesterday against the Dollar. The pair found support at the 3700 level and made a slight rise to around 3750 today.

Result: The Euro rallied back slightly against the Dollar as it rose from 3700 to just above 3750.

GBP/USD The Cable started the day off like it did yesterday and dropped down just below the the 2.0450 mark before the Sterling made a late rally and pushed the the Dollar back above 2.0500. Overall the pair is still trading lower than where it closed yesterday, giving the Dollar a slight edge today.

Result: The Sterling fell hard early on in the day but regained its strength and is now trading at just around the 2.0500 mark.

USD/CHFAlmost like a mirror of yesterday, the Swissy did the exact opposite thing it did yesterday. The pair had risen to around 2150 yesterday and today it has fallen all the way back down to just under the 2050 mark.

Result: The Dollar fell right back down today as it dropped over 100 pips today as it fell from 2150 to around 2050.

USD/JPY The Dollar had a major fallout against the Yen today as it took a 200 pip fall. The pair has been gradually falling since it peaked at 124.13 back on June 21st.

Result: The Dollar took a hard plunge today as it fell 200 pips from 120.50 to 118.50.

Chart Analysis: What’s going to happen next?

EUR/USD

The Euro retraced up today and looks like it may do so again tomorrow. Daily stochastics are trending down which means we’ll probably some more dropping in the medium term but the 4hr stochastics are trending up and indicate a short term rally. If the pair can break its 50 EMA on the 4hr chart at around 3765 then I would look for the Euro to reach 3800.

GBP/USD

The Sterling is still in a similar situation as the Euro. It made a late rally in the day which has caused the 4hr stochastics to start trending up while daily stochastics have just started trending down. I would watch for the Sterling to make a slight rally to around 2.0550 before we start seeing it drop again.

USD/CHF

The Swissy did a major 180 today as it went right back down and is once again nearing the 2000 support line. 4hr stochastics are trending down and daily stochastics seem to be converging together. Currently the pair is trading around 2030 and I would watch for the pair to fall back down to the 2000 mark.

USD/JPY

The Dollar is really tanking right now as it took a huge 200 pip fall today. Daily stochastics are in overbought territory and 4hr stochastics are trending down. The pair made a low at 118.50 earlier today and is currently at 118.76. I would look for the pair to fall back down to at least 118.50 and if the momentum is still strong I could see the pair falling down to 118.00