DAILY FORECAST FOR USDJPY 21st December 2009

Bias:     While 90.06-20 support I look for follow-through to 91.69-74 before correcting again

Daily Bullish:

I warned on a break back above the 90.04 corrective high on Friday we'd be seeing a stronger push higher. So far this has reached 90.90 and should extend higher tonight. A break above 90.90 would extend gains through 91.26 and to the 91.65-74 area. I feel this will cap for a correction. Thus, only above 91.75 would extend the bullish momentum for 92.31 and 92.62. Again I will look for this to hold and for a correction. This structure will imply a final target around 93.13-31.

MT Bullish:

18th December:     I retain the larger targets on the upside at 91.16, 91.70 and 93.13. However, these can only be approached directly while this morning's low at 88.92 holds. This would cause a pullback from 91.70 before rallying to 93.03-30.

Daily Bearish: 

I think we have to look at two potential selling opportunities today: The favored one is at 91.65-75. Watch for a bearish set up there. The second would be if I'm wrong where a break below 90.06-20 would trigger earlier losses that I then feel would extend below 89.90 and 89.42-55. Take care here as this could cause a correction. Once complete we should see Friday's low at 88.92 retested.

MT Bearish:

 21st December: Friday's rally looks more bullish and I feel that apart from corrections the main area where I think we could see a strategic top is in the 93.13-31 area. I suspect this will not been see until next week and possibly not until the New Year.

For access to my daily support & resistance levels please see the Daily Forecast page of my web site 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 available on the Daily Forecast page of my web site along with a new report showing the prior day’s support & resistance levels.