DAILY FORECAST FOR USDJPY 3rd May 2010

Bias:     While 93.80-84 supports the direction remains higher else expect a recycling of the correction back to 92.73-81

Daily Outlook:

I am aware of a basic duality in the structure but the 93.80-84 area is the key pivotal point and while it supports the major risk remains higher. A move back above 94.27-57 would extend gains through 94.82 and 95.20 en route the next larger resistance area around 95.69. Expect a pullback from there. Further resistance lies at 96.02 & 96.66...

Break of the key 93.80-84 pivotal area would delay the rally and instead generate losses through to the 93.33 pivot support and 92.98 en route the 92.74-81 area. I still feel this will hold and would be where we should consider bullish trade set ups if seen...

Medium Term Outlook:

30th April:      While 92.74-81 supports the risk is still higher towards 94.77-89 again and then 95.62 followed by 96.02 with 96.66 and 97.26 the next stronger resistance.… I tend to favor an eventual test of 97.26…

This means we can raise the reversal level to 92.74 now

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 in the Trader Package review. (+50 pips)