Forex: USD/JPY recovery fails at 90.50; risk remains to the downside

By IBTimes Staff Reporter | January 22 2010 8:56 AM

FXstreet.com (Barcelona) - The Dollar has failed to break above resistance area at 90.50, and the pair remains strongly bearish according to Valeria Bednarik, collaborator at FXstreet.com, contained below the 38.2% retracement of the last daily bullish rally.

Sponsorship Link

Valeria Bednarik observes the bearish trend intact, with the pair capped by Fibonacci resistance in 4-hours chart: pair remains strongly bearish:4 hours charts show pair contained under the 38.2% of the last daily bullish rally, and several failed attempts to break above it, the 90.40 zone. The fact that the pair has also started the day under the 100 SMA in the daily chart supports the bias.

On the downside, further retreat below 89.80 session low would accelerate downtrend, says Bednarik: Under today's Asian low around 89.80, pair should quickly extend the fall to the 89.50 area, ahead of 89.20 zone. To the upside, pair needs to regain 90.60 to change current bias, and approach back to the 91.00/20 area, not seen at current zone.

.

More in Forex