USD/JPY 88.03 - 2 July 2010

USD/JPY Open 87.66 High 88.53 Low 87.05 Close 87.57

On Thursday Dollar/Yen sharply dropped on bad US economic data, matching the very negative Interbank sentiment at nearly -67%, after which strong upward correction started. The currency couple depreciated from 88.53 to 87.05 yesterday, closing the day at 87.57. Today the momentum of the upward adjustment pushed the pair up to 88.20. On the 1 hour chart the downward channel is intact, while on the 3 hour chart the bigger downward channel is looking good. Break above yesterday's top and nearest resistance 88.53 would support further recovery of the Dollar. Immediate support is yesterday's bottom at 87.05, and consistent break bellow it could strengthen the Yen further down towards next target 86.00. There are no major economic events for Japan today. Quotes are moving just above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term bullish impulse and medium term bearish pressure. The value of the RSI indicator is positive and declining, MACD is negative and calm, while CCI is about to cross down the 100 line on the 1 hour chart, giving overall short signals.Technical resistance levels: 88.53 89.55 90.71Technical support levels: 87.05 86.00 85.26

Trading range: 88.15 - 87.50Trend: DownwardSell at 88.03 SL 88.33 TP 87.63

Already made +9 pips profit on USD/JPY today from the following signal:5:34 GMT+1 Sell USD/JPY at 88.25 SL 88.51 TP 87.75 exit at 5:40 GMT+1.Total today +92, yesterday +107, as shown in details at