Fundamentals:  We have a few announcements today which will affect the market.

Coming from US we have the “Jobless claim”. The previous announcement was 545.0k and the forecast for today is 550.0k. (12:30  GMT).

one more announcement coming in from US “Home sales” which will be released at  14:00 GMT. The previous announcement was 5.24m and the forecast for today is 5.35m.

There are 2 types of analysis that are commonly used in the Forex market:

1. Fundamental analysis

2. Technical analysis

There is a constant debate as to which of these is more accurate. I’ve found that  the best analysis’s  are the ones that incorporate a little bit of both

One of the most important tools for analyzing the Forex market are the Support and Resistant lines.

Here’s how the support and resistance points are recognized:

When the market moves up and then pulls back, the highest point it  reaches before it pulling back is a  considered the resistance point.

Once the currency changes directions, the lowest point it reaches becomes the support line.

Once the Support and Resistance lines are established we can use them to position ourselves on the charts following the market trends while safeguarding our positions as well.

My next review will illustrate how to use this tool to perform Technical Analysis on the charts.

USD/JPY

Over the last few days The pair is having a little difficulties getting under the support  90.30 and staying there. Looks like this pair moving to few new support lines .the market have several bars before that happens, USD/JPY moves without a clear trend on a hour chart, when we are looking over a daily chart we can see a clear downtrend, to make it easy we can find in the last 30 days more sellers of the us dollar and more buyers of the japans yen, over the daily chart it will look as 18 reds bars and 12 blue bars

Keep your eyes open, don’t forget to put the S&R lines