Go to a source that allows you to assess recent exchange rate movements (such as Yahoo.finance) of JPY/USD trends over the past year . Go to cmegroup.com to obtain the current (making sure to include the date you select) futures price for the RMB and calculate (use the annual percentage formula) whether the JPY is currently trading at a discount or at a premium to the USD. Make sure to include the specific maturity date of the futures contract you select (try to find one with a maturity date of approximately one year from now).

Compare the forecasts for the future movement of the JPY/USD using a Technical forecasting approach to what would be predicted using a Market forecasting approach. How would you interpret what each type of these two forecasts tells you? Which do you thing is more accurate, and why?