Technicals

USD/JPY: The USD continued dropping today USD/JPY Technical Analysis 15 October 2008 Forexpros.com Daily Analysis - 15.10.08 More USD/JPY

USD/JPY Daily

Resistance 3: 104.80

Resistance 2: 10450/60

Resistance 1: 104.10/20

Latest New York: 103.92

Support 1: 102.50/60

Support 2: 102.00

Support 3: 101.80

Comments

Rally back from the Friday lows likely a Head-Fake; double top has formed and a strong sell signal suggests a potential short is now confirmed at the 105.00/50 area again. Rate has broken trend line support. Traders note that the market continues to trade technically and expect stops to be run in both directions near-term; expect more volatility. Looking for the rate to briefly follow through higher for a short-covering rally through Tuesday but fall harder into mid week; likely in the 10460/80 area. Day traders may get a lot of opportunity as the rate will likely cover a lot of the same ground twice on the hourly time frame. Stops could be in size at the 102.50/80 area. Resistance at 104.80 area remains significant now and rallies should be sold.

Data due Tuesday: All times EASTERN (-5 GMT)

7:50pm CGPI y/y 3.6%

7:50pm Current Account 1.95T