Weekly Report11 - 15/ 1 / 2010

The dollar versus yen was able to start building a bearish technical pattern, which is a rising wedge currently proceeding insures the breach of main support for this pattern at 92.60. This negative pattern is accompanied by negative signs through momentum indicators, where trades stabilized below main resistance 93.80; therefore making us expect a bearish short term direction for this week where its main targets start at 90.35 and then attempt to breach it to pave the way to targets levels below 89.00. Keep in mind the importance of the daily close remaining below 93.80 to maintain the expected bearish direction's pace.

The trading range for today is among the key support at 88.00 and the key resistance at 94.50.

The general trend is to the downside as far as 102.60 remains intact with targets at 82.60.

Previous day Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 92.60 target 90.35 and stop loss above 93.80, might be appropriate.