USD/JPY Technical Analysis 12 August 2010

On Wednesday Dollar/Yen traded tentatively and with a slight decline, in converse with the positive Interbank sentiment at nearly +18%. The currency couple depreciated from 85.46 to 84.85 yesterday, closing the day at 85.31. Today movements are hesitant and within yesterday's range for now. On the 1 hour the downward channel has slowed down, and on the 3 hour chart the downward channel looks intact. Break above yesterday's top and nearest resistance 85.46 would support further recovery of the Dollar. Immediate support is yesterday's bottom at 84.85, and consistent break bellow it could strengthen the Yen further down towards next target 84.00. Today was Japan's Industrial output, already passed at 4:30 GMT. Quotes have just gone bellow the 20 and 50 EMA on the 1 hour chart, indicating short term bearish pressure. The value of the RSI indicator is positive and declining, MACD is neutral and calm, while CCI is about to cross down the 100 line on the 1 hour chart, giving overall light short signals.Technical resistance levels: 85.46 86.21 87.00Technical support levels: 84.85 84.00 83.13

Trading range: 85.50 - 84.90Trend: DownwardSell at 85.40 SL 85.70 TP 85.00

Already made +19 pips profit on USD/JPY today from the following signal:5:34 GMT+1 Sell USD/JPY at 85.41 SL 85.67 TP 84.91 exit sent at 5:53 GMT+1.Total today +91, yesterday +171, as shown in details at http://www.zifx.com/performance.php.