 Good morning and welcome to the chart of the week video with me, David Madden. Today's date is Friday the 2nd of October 2020 and the time is 9.34 British Summer Time and this week's chart of the week is the US dollar versus the dollar yen. If you take a look at the wider range over the last couple of years since January 2017 so the last two years in nine months or so dollar yen has been a clear downward trend and if you take a look at the price action of the last few months I know we saw a lot of volatility in February March when the pandemic was kicking in but if you take a look at the price action since late March you can see that dollar yen has been in a fairly clear and obvious downward trend a nice series of lower lows and lower highs. We can see here that the market bounced off of the kind of 104 level it pushed higher in the last few weeks but once again it ran into resistance at this blue line here the fifth-day movie average which comes into play at 105 spot 73 and if you take a look at this blue line here on a few occasions in the last few months it actually has both support and a few occasions as resistance in the last number of months and if price metric has been important in the past it makes it more likely it'll be important in the future although there are no guarantees but especially very recently it's tried unsuccessfully on a few occasions to get back above the metric but it couldn't quite do it so while we hold below that metric it's likely at the wider downward trend is going to continue if you press on lower from here because we're currently at 105 spot 14 a break below the 105 level could take us back down towards the lows of the kind of late September in around in around 104 spot 40 a move below that could take us back to the recent low in 104 itself in that region if if you take a look at the price action back in mid of March there really isn't much in terms of you know support or resistance or kind of consolidation zones once you go below immediately 104 so if you take up take out 104 that could put us on track down towards 103 spot away and a move below that could take us down towards 102 101 spot 19 so there really isn't that many kind of price levels in terms of potential areas for support once you have it if you do have it fairly decisive break below the 104 area I do want to point out though that the lows here in late September wasn't that much lower than the lows achieved in late July so it seems to be that this zone here 104 up towards 104 spot 18 could be a significant area of support should we move to the downside so if you head back towards there we could see some fresh buyers enter the fold but but you can't ignore the downward trend you can't really ignore the series of lower highs in the last few weeks but if you do break above and if you have a decent break above the 15 movie average that could be fairly significant given that it's tried unsuccessfully to make a meaningful move above it in the last few months so if you do head above it we could head up towards this this yellow line here which is the 100 a movie average that comes into play in a 106 spot 59 on a few occasions that that area has actually resistance so it could be of significance and if you head up head above the the 100 a movie average it could take us up to the 107 area if you can see here that region active as resistance in the middle of August and there's a bit of consolidation in the around that area broadly speaking in the zone as well in July too so keep an eye out for that if you are going to be trading the the dollar end or any of the dollar crosses keep an eye on the dollar index this here is the dollar index December contract in the last few weeks it's been pressing higher in fact this day last week it hit a two month high so the dollar has been rebounding in early September it hit a it is lowest level in over two months last Friday it is the highest level sorry last in early September it is not lowest level in over two years last Friday it is it rebounded and it hit its highest level in over two months so we're kind of at a turning point could be look to continue this this wider upper trend in the dollar and if you take out the highs of last Friday that could be significant for that for the dollar end or are we going to turn over on a self and have another move to the downside and if that is the case then we could see a continuation in the wider negative trend for dollar yen if you are going to be trading the dollar yen or even to be honest any of the other financial markets today keep in mind that at 13 30 British summer time we have the announcement the big announcement from the US non-farm payrolls is there is the update in fact we're actually my colleague Michael Houston is actually hosting a live webinar event at 13 15 British summer time covering covering the payrolls so if you have time and you're available please tune into that and if you don't no worries because the recording is also going to be on the YouTube channel thank you for listening for this video have a good training week and good luck