After reversing its intra day weakness to close flat on Tuesday, USDJPY has started Wednesday trading session on a bid tone rallying to target further higher prices. A convincing break and hold above the 91.86 level, its May 20'10 high is required to trigger further corrective recovery towards its May 20'10 high at 91.86 and then the 92.95 level, its May 18'10 high. These key levels should cap further strength if seen thus turning the pair back lower again. However, if a cut through those levels occurs, we should witness a move higher towards its May 13'10 high at 93.63. Alternatively, the risk to our analysis will be a return below the 89.25 level, its May 25'10 low, which will suggest further downside weakness risk towards the 88.94 level, its May 20'10 low and then its May 06'10 low at 88.23 ahead of the 88.12 level, its Mar 04'10 low. Other supports are sited at its Dec 09'09 low at 87.35 and its 2010 low at 84.80.
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