Weekly Report 28 -31 / 12 / 2009
The dollar versus yen is near the resistance level for the descending channel that organizes trades for the bearish short term wave at 92.65. Accompanying the pair reaching these levels are overbought signs appearing through the stochastic and the RSI; thus, adding more strength to the resistance level for this channel. From here, the fact that trades are occurringinside a descending channel makes us expect a bearish short term direction for this week, where it has started to build its base on the mentioned resistance level and target mainly 87.85 and then 86.35. For the expected bearish trend to prevail, it requires the daily close to mainly remain below 93.10.
The trading range for today is among the key support at 86.35 and the key resistance at 95.00.
The general trend is to the downside as far as 102.60 remains intact with targets at 82.60.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair from 92.65 target 90.75 and stop loss above 93.85, might be appropriate.|