Price:   134.94

Bias:  The 134.70-81 area needs to hold to retain a bullish stance for 135.86-02 - else breach extends losses to 133.70

Daily Bullish:

Gains were seen as expected and actually broke above 135.25 but then stalled at 135.47. While the 134.70-81 area can support I still feel there is room for one more push higher. A move from here back above 135.29-47 would extend the rally to 135.86 and possibly 136.02. However, this does look like being strong enough to hold. Therefore, any stronger bullish stance will require a break above 136.05 which would then provoke an even stronger rally towards 136.67-79. Again we should take care here also.

MT Bullish:

22nd September: USDJPY provided the support for a stronger push higher and this appears to have potential to 135.86-02 at least. Only above here would imply follow-through to 136.67-79. Then note resistance at 137.95-138.31 and the 138.70 high.

Daily Bearish: 

Momentum is beginning to slow but I feel the greater risk is for one more attempt higher that I favor holding at 135.86-136.02. Look for a bearish reversal pattern here - and preferably a bearish divergence. Only an earlier breach of the 134.70 support would reverse the upward move directly and trigger follow-through lower below 134.30 and to the 133.70 corrective low. I suspect this area should generate a pullback at least. Next major support is at 132.45.

MT Bearish:

22nd September:     If we see 135.86-02 with a bearish divergence then I feel there is a strong chance that we'll see a correction at the very least. A move back below 134.70-90 will confirm...

For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are now available on the Daily Forecast page of my web site.