Japanese Yen (JPY) Technical Major Currencies (2010-07-27)

The pair retested the previously breached level of87.35 and reversed to the downside to show signs of a bearish technical pattern, where its neckline is at 86.80. This makes us expect a bearish intraday direction that will start with a clear breach of the mentioned neckline and head towards targets that start at 85.95 then 85.35. This scenario requires the four-hour closing to be below 87.65 to prevail.

The trading range for today is among the key support at 85.35 and the key resistance at 88.00.

The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.

Previous Report

Weekly Report

Support86.8086.3085.9585.3585.00Resistance87.2587.6588.0088.6589.00RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 86.80 targeting 85.95 and stop loss above 87.25, might be appropriate.