Weekly Report (May 09-13, 2011)

The USD/JPY maintained the stability below the resistance for the main downside channel with weekly closing below it. This is a strong signal for a possible downside move this week supported by the negative pressure from the SMA 50 alongside Stochastic gradually unloading its positivity. Targets start from 78.40 while breaching 80.85 with stability above it delays the targets.

The trading range for this week is among the major support at 77.70 and the major resistance at 83.50.

The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.

RecommendationBased on the charts and explanations above our opinion is selling the pair around 80.85 targeting 79.00 and stop loss above 82.00 might be appropriate this week