USD/JPY Technical Analysis 21 July 2010

Dollar/Yen continued the upward adjustment on Tuesday, in line with the positive Interbank sentiment at nearly +1%. The currency couple appreciated from 86.69 to 87.57 yesterday, closing the day at 87.48. Today the pair is making downward adjustment for now. On the 1 hour chart the downward channel is on hold, and on the 3 hour chart quotes are testing the upper limit of the downward channel. Break above yesterday's top and nearest resistance 87.57 would support further recovery of the Dollar. Immediate support is yesterday's bottom at 86.69, and consistent break bellow it could strengthen the Yen further down towards next target 85.50. There are no major economic events for Japan today. Quotes are moving about bellow the 20 and just above the 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is positive and declining, while CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.Technical resistance levels: 87.57 88.39 89.10Technical support levels: 86.69 85.50 84.12

Trading range: 87.25 - 86.60Trend: DownwardSell at 87.12 SL 87.42 TP 86.72

Already made +4 pips profit on USD/JPY today from the following signal:5:34 GMT+1 Sell USD/JPY at 87.11 SL 87.37 TP 86.61 exit sent 5:41 GMT+1.Total today +48, yesterday +161, as shown in details at http://www.zifx.com/performance.php.