Forex Technical Update June 29, 2010  USD/JPY Support to be Tested by Yen Strength  

  • Daily and Weekly: The USD/JPY was projected to go to the 88.30 level in the beginning of June. After an engulfing pattern, the daily RSI showed a negative reversal (When the RSI made a higher high, but the price action did not).
  • The 88.30 is a swing projection, but really, the support is 88, and below. 88 is the upper bound of the support zone, and 85.0 area is the lower bound.
  • The daily time-frame shows very bearish momentum as the RSI is breaking below 30. This tells me to not respect the 88 support. This makes me anticipate a decline towards the 84.80 low of 2009.

  Fan Yang Currency Analyst Commodity Trading Advisor

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.

All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.