USD/JPY: Daily close below 97.00 could trigger drop to 93.00, says Mizuho

By IBTimes Staff Reporter | March 19 2009 12:28 AM

FXstreet.com (Barcelona) - The Dollar has not been able to take the 100 resistance level after having been hovering below it for some time, and the pair has dropped to the lowest levels of t6he last three weeks at 95.23 low.

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The pair is attempting to perform a recovery move, but the Dollar seems unable to break Mar 12 low at 95.67. Nicole Elliott, senior technical analyst at Mizuho Corporate Bank advances the possibility of the Dollar dropping lower: Closing below the 97.00 area with a very large 'bearish engulfing' candle. This has turned momentum bearish, which should increase with a weekly close below 96.00. This should set off the drop to 93.00 that we had warned of two weeks ago.