Volatility in the Dollar/Yen pair continues to grow downwards. At levels around 86.70 now we have serious support, which withstood a second test. Decline in stock markets leads to the strengthening of the Yen against the Dollar. This correlation may be a good starting point in deciding when to trade. It is expected the wave of negative corporate news to continue. No clear assessment on how this will affect the currency couple can be given, but moods are still in favor of the Yen. On the 4 hour chart we have symmetrical triangle with decreasing initial impulse, which is a prerequisite for consecutive test of the 86.70 support. Short term resistance level is 89.10, followed by 90.00. Break downwards would automatically lead to the next key support level at 79.80 from the year 1995. This course of the Yen against the Dollar would have an extremely negative impact on the Japanese economy, which should lead to intervention by the BOJ.
Technical resistance levels: 89.55 90.40 91.50
Technical support levels: 88.00 87.10 85.95
Trading range: 88.50 - 87.85
Sell at 88.37 SL 88.67 TP 87.97
Already made +25 pips profit on USD/JPY today from the following signal:
5:49 GMT Sell USD/JPY at 88.61 SL 88.87 TP 88.11 exited at 6:15 GMT.
Total today +146, yesterday +157, as shown at www.zifx.com/performance.php