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Chart of the Day



As Japan's new government strives to keep the world's third largest economy afloat via aggressive monetary easing, the Yen has fallen off its own Fiscal Cliff tumbling over 14 percent since Q3 2012. Now trading at roughly 88 per dollar, some analysts believe that then Yen will weaken to the 100 mark within 2013.  However, according to former top currency official in Japan, Professor Eiuske Sakakibara, the dollar/yen rate will top out around 90 (blue resistance line).  According to CNBC,

Sakakibara believes that the market has already incorporated additional monetary easing, thus the Yen continuing to weaken to 95 or 100 is unlikely.  Today's NinjaTrader Chart of the Day, powered by the free End of Day Kinetick data feed, showcases the daily line on close $USDJPY currency pairing and 6J 03-13 ($6J_F) Yen Futures Contract.  Utilizing the "Ruler" drawing tool, which is pre-equipped with every install of NinjaTrader, one can easily measure number of bars, time and value for any charted price action.  Moreover, technical traders often use the Stochastic Indicator, a momentum indicator, when hunting down possible entry and exit points.   The Stochastic Oscillator is made up of two lines that oscillate between a vertical scale of 0 and 100.  As the 14 period fast moving average (K - light blue) moves above the 7 period slow moving average (D - green) , one might consider that to be a solid point of entry, and vice versa as the fast moves below the slow.  As the Bank of Japan continues its expected monetary easing, it will be interesting to see how Washington's decisions regarding the debt ceiling may impact the currency pairing.  Could raising the debt ceiling hedge the Yen from breaking the 90 mark?