AUD/JPY Forecast 2009

Short-Term Forex Technical Outlook: AUD/JPY

Currency Pair: AUD/JPY
Chart: 60 Min Charts
Short-Term Bias: Bearish

As risk trends continue to dictate price action in the forex market, the technical outlook favors a bearish forecast for the AUDJPY. After falling to a low of 55.08 of 10/27, the pair jumped to a high of 70.53 on 11/4, but the lack of momentum to push higher has held the pair in a downward trend. At the beginning of the week, we saw the pair move towards 62.85 (50.0% Fib retracement level), but the failure to break above this level suggests that the pair will move lower over the remainder of the week.

Moreover, the divergence from the 120 SMA should drag the pair lower over the next few hours of trading, and may work its way towards the moving average by the end of the session.

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Index Options Put/Call Ratio

This indicator is calculated by dividing the weekly volume of S&P 100 call options by the weekly volume of S&P 100 put options. Big call volume appears at market tops and big put volume at bottoms. But call/put ratios of the indices like OEX and SPX are distorted and clouded by arbitrage and hedging and do therefore not always reflect true investor sentiment.

This indicator is calculated by dividing the daily or weekly volume of call options by the daily or weekly volume of put options. Big call volume appears at market tops and big put volume at bottoms. Only CBOE equity options or all CBOE options should be used for this indicator. Call/put ratios of the indices like OEX and SPX are distorted and clouded by arbitrage and hedging and do therefore not always reflect true investor sentiment. The chart below shows you the weekly call/put ratio on a 4-week moving average to smooth out the swings.

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Limit Order and Stop Order

This is an order to buy or sell a given currency at a pre specified exchange rate or better, and can be used to enter or exit trades. It “limits” the price at which you are willing to trade at. When a Buy Limit order is placed, the trade cannot be executed at a price that is higher than the specified limit price. Therefore the buy limit is placed below the current market price. It can be used to obtain a better entry price when looking to go long, or used to close out or exit an existing short position at a profit.

When a Sell Limit order is placed, the trade cannot be executed at a price that is lower than the specified limit price. Therefore the sell limit is placed above the current market price. It can be used to obtain a better entry price when looking to go short, or used to close out or exit an existing long position at a profit. When using limit orders to exit existing trading positions, long or short, it is usually associated with pre-determined trading targets.

This is also an order to buy or sell a given currency at a pre specified exchange rate and can also be used to enter or exit trades. It is activated when the specified exchange rate, in this case the stop price, is reached. This is a very useful order, in that it is placed on the opposite side of the current market price than the limit order.

When a Buy Stop order is placed, the order cannot be placed at a specified prices that is lower than the current market price. Therefore the buy stop is placed above the current market price.
In this way it can be used to enter a new long position when the price of a given currency breaks above, “a price break-out”, a certain rate or it can be used to limit a loss in an existing short position. When a Sell Stop order is placed, the order cannot be placed at a specified price that is higher than the current market price. Therefore the sell stop is placed below the current market price.

In this way it can be used to enter a new short position when the price of a given currency breaks below, “a price break-down”, a certain rate or it can be used to limit a loss in an existing long position. As briefly mentioned above the stop order can also be used to stop a loss or protect profits, when the price of a currency moves against a trading position. This is why it is also referred to as a "Stop Loss" or “Protective Stop” order.

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Profitable Forex Trading System Revealed

The technique I will describe below is a great opportunity to jump in a trade. The set of rules that I describe can be used as a Forex system. I have heard many names for this technique with the most successful one called the "Pinball Trade".
It is the first system I learned and applied successfully during my long trip in Forex research. Experiment with it and see the results on your own. For now let's see how this system is applied.

When you recognize an uptrend or a downtrend in Forex charts try to create the channel that includes this trend. When the price hits the one channel line and returns to the other channel line try to see if this line coincides with a Fibonacci retracement level.
The price does not necessarily have to hit both the channel lines but the price swing has to be restricted from the channel lines.

This trade setup will give you a high opportunity that the price will reverse (76% of the time according to long term research). Take a good care to design correctly the channel lines and the Fibonacci retracement levels.

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ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Benefits of Currency Crossing through Forex

A trader or a non trader, anyone who has a little bit knowledge about Forex trading would have surely wondered within themselves, the need for exchanging currencies. And if so, then why through Forex?

First of all, let’s talk about the need to exchange currencies or cross currencies. Let’s take the example of a businessman, who needs to conduct oversees or international deal with a supplier. Now, he needs to pay the supplier in foreign currency. What he owns for now are US dollars and what he needs to trade are Japanese yens. So, the trader would want to do so through Forex. Many investors opt for Forex to trade currencies and make a profit. At Forex, a particular currency can be bought at a low exchange price, and then, once its prices rise up, can be sold off in the market to gain profit.

When an investor or individual wants to trade one type of currency for another, it is called exchanging currency, or crossing currency. Currency crossing is the main goal of trading on the Forex.

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ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Forex Stock Brokers

Forex involves brokers, which many investors directly use as a stepping-stone to avoid jeopardizing their future. Brokers however usually manage limited part of the charge account, while it is up to the capitalist or trader to handle the intermission.

Brokers commonly hobble to codes and stay up to with the trends in Forex exchange with fashions in the market, individually the Foreign Stock Markets. Brokers commonly focus on the best pips and spreads in Forex. Often the individual brings about calculate basics in low spreads, which are set up in buying or selling pips at higher stakes. The broker stays focused on revenue generated in currency pairs.

Brokers often accept this endorse for handling trader accounts. Few brokers in the stock market or Forex claim to believe on debits in a commission. You should without exception glance at the versions, advice, etc correctly before venturing into stocks.

Learning margins is important. In the Forex market, investors have common avalanche*, that they counterbalance and could rank at one hundred to one. This way the pips in the Forex market are at the minutest rate, which is 1%. This has nothing to do with the average soul considering Forex, yet experienced investors in stocks it means that the pips could rate at carelessly $10, i.e. per unit and at the rate of 100,000. Margins employ "sarong lots." The lots open volume for being, which the value in pips at one buck at units of 10,000 can adapt easily per lot at averages of one hundred to one. The pip value would still be 1 percent, yet the height of the lots is what investors' temp agency on. Still, if the fertility size flexes, it could facilitate easy admission for traders in the market to identify with indentures size based no their own payments, which could be $1 low.

Stocks, including Forex trades involve intercontinental currencies, expostulation markets, which risks are often high. The chances increase per person that joins the industry. In the market, buy and soft sell* states play a large part, yet the high and lows factor into the weight locus on buy and sell states. During this utterance, the high and lows can shift, thus the stakes could reverse, on the dot scarring the traders in the industry.

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[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

The Importance of a Good Investment Program on Forex Trading

Have you ever thought about doing a trade globally? Some people might be a bit hesitant to do such a thing, but the opportunity is just waiting for you out there. You don’t actually have to travel outside your country, if that’s your concern. With the the Internet facility, you can in fact do forex trading on a global scale even in your own home, at work, and regardless of your location.
The FX market seems sophisticated, especially to new traders, and they find it rather complicated to go about the trade. But nothing is impossible once you’ve learned the trade. It is a worthwhile venture that you might want to consider even on a tight office schedule.
Being employed in a particular company may not provide you with all the money that you would need to finance your everyday living. Doing some extra work is often advisable specially in today’s times when money is difficult to find. Don´t worry anymore; the FX market is not far from your reach.

Identify your objective upon entering the FX market. This is the first step, so that you will stay focused in your endeavor. Once you’ve set up a goal, you have to do all that is necessary to reach that goal, but it should be in a reasonable manner.
In going through forex trading, you will need an investment program, and a good one. Don’t settle for anything less because a good program is essential to succeed in forex trading.
Most rookies commit the biggest mistake of their lives by availing fraudulent programs. The FX market is an enormous industry, and the fact is that there are many scams and con artists in the Internet, which actually provide useless materials for beginners. This often leads to frustrations of beginners because they’ve already failed even before they get to start the actual trade.

Find a legitimate forex investment program. Although it might require a bit more research, as well as a bit of your time, once you get what you’re looking for, you’re in a good position to start.
You don’t need to settle with expensive programs, nor with programs promising easy and quick profits with less the risk. You must be aware that though the FX market offers a lot of opportunities, it has also a lot of risks related. To become like the pros, you need to learn the forex trading system; and you have to be serious in learning it.
A good program is dynamic. It provides daily advice, manuals, DVD materials, computer disks, and other important forex trading stuffs or resources to turn you into a successful trader. Verify if their previous clients are satisfied with their services, and see if the company has built a good reputation in the business.

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[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Knowing Some Words Used in Electronic Money Transfers

Electronic money transfers are not only used in connection with foreign currency exchange payments, but in a host of other payments especially when larger amounts are involved such as property, cars, boats, in fact anything.

Nowadays, EUROPEAN CROSS BORDER PAYMENTS are made easier for the parties to send, thanks to the use of IBAN which means International Bank Account Number for short.

IBAN is a bank code which identifies the account number and additional characters,
thus avoiding possible mistakes..

It must be noted however, that its validation is no guarantee that the account number or bank code is correct or that it exists.

It is the responsibility of the account owner to notify their IBAN to the party they wish to deal with.

The IBAN is given for the account by the bank serving that account, and should only be taken from that bank. It prevents getting possible incorrect IBAN details, as this can cause delay in receiving payment. Nobody wants any delays when making foreign currency exchange payments.

Companies dealing with international money transfers are very exact and are eager to change one currency against the other as fast as they possibly can, to complete the deal and show their clients how smoothly and quickly they perform.

The bank identification code BIC is another abbreviation, which you will come across.

BIC is a way of being able to identify financial institutions so that the process of telecommunication in financial institutions/banks is facilitated.

In order to make a payment, it is required to quote the IBAN and BIC. The use of IBAN became compulsory since July 2003.

Most people have heard of the abbreviation SWIFT, which stands for Society for Worldwide Interbank Financial Telecommunication

SWIFT is a global provider of secure financial messaging service. It is this service that foreign currency exchange companies use to move the money bank to bank. It is also the same service constantly used to move millions of pounds and other currencies by countless other financial institutions. It is fast and safe.

CHAPS or in short The Clearing House Automated Payment System is an electronic same day value payment in sterling, and within the United Kingdom.

It is to be remembered that banks make a charge for the electronic payment transfers.
In contrast, almost all foreign currency exchange companies do not make a charge for outward electronic payment transfers.

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[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

What Would You Rather Do

Read About Someone Else's Forex Success or Experience Your Own

You can draw some useful parallels between running a business and Forex trading. For instance, most successful businesses keep statistics on everything from their conversion rate, to their average dollar sale, to the number of people that come in the door.
Businesses do this to keep on top of how they are doing on a day-to-day basis and businesses must first take score before beginning to improve on that score.

Using a Forex back testing plan in your trading works exactly the same way.
Now that you're looking at Forex trading as a business, you need to learn some valuable statistics about your system so you can improve it's performance.

You would use a Forex back-testing method. You can't improve your system unless you have something to measure it against. How could you expect to improve your trading unless you knew what it was you were looking to improve? You can discover these measurements and other valuable information about your trading system, by using a Forex back testing plan.
There are two ways that you can use a Forex back testing plan to back test a system.
You can do it manually, which can be a drawn-out and labour-intensive process, or you can do it with the aid of some software packages.

Unfortunately, I recommend you do it by hand when you first start out. You'll get a much better feel for your system, and you'll understand exactly how using a Forex back testing plan works in all its intricacies.
Once you have the Forex back testing plan and the in-depth knowledge, you could look at finding a software package that does it for you.

[ForexGen Live Account]

The live/real account is provided to those clients who may have some experience in the online trading.


[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Choppy Markets Cloud A Potentially Strong GBPUSD Range

Fundamental forecasts and technical price patterns are rarely clean and clear for any market. For recent GBPUSD congestion, this reality leaves the pair on the edge of a potentially lucrative range setup or major breakdown.

Why Would GBPUSD Hold a Range?

· Levels to Watch:
-Range Top: 1.5725 (Fib, Swing High)
-Range Bottom: 1.4360 (Trend, Fib, SMA)


The markets are still very thin; and developing new, major trends will be exceptionally difficult without a deep market to feed momentum and keep opposing market forces inundated. On the other hand, the week fundamentals between the US and UK as well as the inequality for interest rate expectations will make for a strong current to for recharging a dominant theme and trend. Event risk is also a consideration that should be accounted for.

·Looking at the long-term GBPUSD chart, it is hard to miss the dominant trend that has developed for the past 14 months. However, it is very difficult to extend an already exhausted trend in illiquid markets. Therefore, we are left to wonder whether this pair is developing an imprecise triple bottom or pushing the next leg of a major bear trend.

Suggested Strategy


· Long: Half sized entry orders will be set at 1.4480 – above spot.

· Stop: An initial stop at 1.4360 is wide enough to cover a tail on a triple bottom in thin markets. To secure profit, move the stop on the second lot to breakeven when the first target hits.

· Target: The first objective equals risk (120) at 1.4600. The second target will be 1.4800.

Trading Tip – Fundamental forecasts and technical price patterns are rarely clean and clear for any market. For recent GBPUSD congestion, this reality leaves the pair on the edge of a potentially lucrative range setup or major breakdown. Regardless of what happens though, this setup is very risky. Those that are risk adverse should stay clear; and even aggressive traders should approach this cautiously and with a sound setup. Looking at price action into the US session close, we can see that GBPUSD has already closed below the early December low to a six and a half year low. However, history shows us that it is very difficult for a market to revive a move that is already pushing an extreme under normal conditions. When liquidity is as thin as it is during the turn of the New Year, it becomes exponentially more difficult to define a new leg of a major trend. At the same time, such conditions also make for choppy and imprecise markets. Therefore, we are approaching this setup with an entry that looks for confirmation of a reversal, half-sized positions and wide stops - all to lower risk. Furthermore, we will cancel all open orders by Thursday or should spot hit 1.4325 before we are entered.

Event Risk UK And US

UK – Scheduled event risk is significant for the pound, but not until Friday. On the other hand, it is important to look at the broader context in the fundamental drive behind this currency and economy. The United Kingdom is one of the view major nations that can rival the US for depressed forecasts in its growth and financial markets. The housing and consumer sectors in the UK is projected to see far worse times ahead of it thanks to the imbalance in the credit markets and the momentum behind one of the worst global recessions in decades. What’s more, interest rates (a primary gauge for expected returns from assets) still has considerable room to fall in the island nation – and fall they will. This provides the pound with a general bearish tone; but the economic docket will also have its influence later in the week. On Friday, the calendar fills out with credit, housing and manufacturing data that will be essential to discounting next week’s BoE rate decision.

US – The ebb and flow in dollar interest that is based on the concept of the US as a safe haven has certainly tempered with the global drop in liquidity. However, in its place comes the primary fundamental forecasts for growth and financial health that were previously relegated to the back burner when panic was diverting capital to Treasuries. This outlook is certainly bleak. On the other hand, the market has certainly made the effort to discount such concerns. To try and unbalance these long-term considerations, economic indicators may have their way with price action over the coming days. Tomorrow, the lagging S&P/Case-Shiller housing sector inflation gauge will reaffirm what other indicators have already established, but a December consumer sentiment gauge will offer a better angle.

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[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Dollar Recovers Further as Bailout Announced

Dollar bounces back, recouping some of week's huge losses, as Detroit gets emergency loans

The dollar continued to surge higher against the euro Friday, recovering some of this week's steep losses as the U.S. government announced a $17.4 billion bailout plan for Detroit.
The 15-nation euro plummeted more than 4 cents to $1.3887 in late New York trading Friday from $1.4313 late Thursday. The euro peaked at $1.4719 early Thursday morning, its highest point against the dollar since September, and has dropped 5.7 percent since then. Last Friday, the buck was worth $1.3371 against the euro.
The dollar got steamrolled after the Federal Reserve cut rates to a range from 0 to 0.25 percent on Tuesday and announced it would take other, unprecedented moves to inject liquidity into markets and jumpstart lending. The dollar started to recover Thursday, however, and the U.S. government's announcement of $17.4 billion in emergency loans for Chrysler LLC and General Motors Corp. now and early next year helped tug it up further as equities gained.

The ECB also said Thursday that it would increase the interest rate it charged banks to borrow from the ECB, while lowering the rate paid on deposits parked within the bank. The changes would take effect Jan. 21 after the ECB's next meeting Jan. 15, when the refinancing rate could change.
While the ECB did not detail the reasons for the moves Thursday, officials at the bank recently said they were considering measures to encourage financial institutions to lend more to one another.
Interbank lending has all but stopped in recent months as bank failures and credit defaults caused lenders to hoard their cash.

The moves could effectively increase the money supply, which, like cutting rates, can weaken a currency.
The ECB still has one of the highest key interest rates of the majors at 2.5 percent. The Bank of England is likely to ease further from its 57-year low of 2 percent as Britain struggles with a collapse in housing, a shaky financial sector and unemployment nearing 2 million people.
The pound slid to $1.4859 from $1.5070 late Thursday, and is circling parity with the euro at 1.0716 euro.

The Bank of Japan cut its interest rate 0.1 percent on Friday, partly due to the yen's recent surge to 13-year highs, said Gov. Shirakawa. A strong yen hurts the country's major exporters, raising the prices of Japanese autos and electronics for overseas consumers.
The dollar inched up to 89.45 Japanese yen from 89.42 yen. On Wednesday, the dollar bottomed at 87.11 yen, a 13-year low.
In other late trading, the dollar rose to 1.1073 Swiss francs from 1.0754 francs late Thursday, and edged up to 1.2221 Canadian dollars from 1.1997.

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Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.