Yesterday we saw BoJ intervening in the markets which now seems to be having less effect on the market. Euro on the other hand also lost ground when fresh doubts over debit crisis plans surfaced.
This week is loaded with fundamental event risks, tomorrow we have US Fed policy announcement and NFP later in the week on Friday.
Lets look at daily chart:
Yesterday price broke and closed below the rising Trendline and it is now facing a minor Trendline which is acting as a support level. Look out for a bounce up back to the previous Trendline at 1.40.
Keeping the fundamental news announcement in mind this week caution is advised. Remember capital preservation is the key to successful trading.
Forex Signal :Look for longs if you see a bounce up from the trendline around 1.3800. If price reaches 1.40 then look for shorts on a pullback.
In case price continues to move lower below the trendline at 1.3800 then look for shorts on the retest of this broken trendline.