Daily Pivots: S2: 90.52; S1: 91.09; P: 91.82; R1: 92.39; R2: 93.11

USDJPY

The USD/JPY dropped 125 pips (1.4%) during the last 24 hours to a low of 91.25 on 1/5/10 and has since partially retraced that drop. In fact all of the yen crosses have moved lower, with the GBP/JPY dropping 300 pips (2%) and the EUR/JPY dropping 200 pips (1.5%). Comments made from a senior Chinese official regarding appreciation pressures of the Yuan filtered into the Yen. The USD/JPY has reached a nice sell zone on the daily chart, so we will look to keep with this theme of selling USD/JPY on pullbacks to various Fibonacci levels and Moving Average resistance. Sells should be placed between 92.00 and 92.50 with stops above the previous high at 93.25. (38.2% at 92.00; 50% at 92.20; and 61.8% at 92.45) Profit targets at 90.00, 89.00 and 88.00. (See 1-hour chart.)

USDJPY