USD/JPY Technical Analysis 22 September 2009

Dollar/Yen climbed significantly on Monday, from 91.32 to the 92.53 top, closing the day at 91.91. On the 1 hour chart the downward channel was broken upwards, and quotes formed a new ascending channel, indicate initial bullish correction with targets towards the important resistance and yesterday's top 91.60. But if the currency couple gets back within the downward channel, as the current recovery of the US Dollar suggests, our preferable scenario would be bearish. The currency couple is now testing the lower limit of the ascending channel. Immediate support is 91.15, the break of which may trigger stronger downward pressure with possible test of the key 90.10 support level. The CCI indicator is in the overbought zone on the 1 hour chart, suggesting downward pressure.

Technical resistance levels: 92.55 93.70 94.60

Technical support levels: 91.15 90.10 89.00

Trading range: 91.65 - 91.00

Already made +44 pips profit on USD/JPY today from the following signal:

5:35 GMT+1 Sell USD/JPY at 91.75 SL 92.01 TP 91.25 exited at 7:59 GMT.

Total today +113, yesterday +168, as shown at www.zifx.com/performance.php