Weekly Report18 -22 / 1 / 2010

The dollar versus yen continued to insure the breach of the bullish wedge, shown in our previous reports, while trades stabilize below pivotal support that is represented in 91.20, in addition to being below the MA 200; therefore, it supports our previous expectations by achieving the bullish short term direction heading towards 88.00. It is vital to pay attention to the positive signs that are appearing through the stochastic that might push for some bullish corrections. The bearish short term wave requires the daily close below 93.50.

The trading range for today is among the key support at 88.00 and the key resistance at 93.50.

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 91.70 target 89.75 and stop loss above 92.75, might be appropriate.