USD/JPY 86.93 - 20 July 2010

USD/JPY Open 86.74 High 87.21 Low 86.48 Close 86.66

After the significant decrease last week, on Monday Dollar/Yen corrected deeply upwards, in line with the positive Interbank sentiment at around +1.5%. The currency couple appreciated from 86.48 to 87.21 yesterday, closing the day at 86.66. Today the pair is trading tentatively so far. On the 1 and 3 hour charts the downward channels is still on hold. Break above yesterday's top and nearest resistance 87.21 would support further recovery of the Dollar. Immediate support is yesterday's bottom at 86.48, and consistent break bellow it could strengthen the Yen further down towards next target 85.50. Today are Japan Leading indicators composite index, Japan Coincident indicators composite index, and BoJ meeting minutes at 5 and 23:50 GMT respectively. Quotes are moving about in line with the 20 and 50 EMA on the 1 hour chart, indicating neutral market. The value of the RSI indicator is positive and declining, MACD is neutral and tranquil, while CCI is around the 100 line on the 1 hour chart, giving overall light short signals.Technical resistance levels: 87.21 88.39 89.10Technical support levels: 86.48 85.50 84.12

Trading range: 805.90 - 86.40Trend: DownwardSell at 86.93 SL 87.23 TP 86.53

Already made +12 pips profit on USD/JPY today from the following signal:5:34 GMT+1 Sell USD/JPY at 87.03 SL 87.29 TP 86.53 exit at 7:40 GMT+1.Total today +161, yesterday +134, as shown in details at http://www.zifx.com/performance.php.