USD/JPY 82.56 - 7 December 2010
On Monday Dollar/Yen traded within a 55 pip range, in converse with the negative Interbank sentiment at nearly -50%. The currency couple appreciated from 82.52 to 82.99 yesterday, than started dropping, closing the day at 82.61. Today weakening extended down to 82.33. On the 1 hour chart trading is within wide range, while on the 3 hour chart the upward channel has broken downwards. Break above yesterday's top and nearest resistance 82.99 would encourage further recovery of the Dollar. Immediate support is today's bottom at 82.51, and consistent break bellow it could strengthen the Yen further down towards next target 81.52. Today are Japan's Leading and Coincident indicators, Current accounts, Trade balance, M2+CDs money supply and Machinery orders at 5 and 23:50 GMT respectively. Quotes are moving just above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term bullish and medium term bearish pressure. The value of the RSI indicator is neutral and calm, MACD is negative and inclining upwards, while CCI is in line with the 100 line on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 82.99 83.86 84.70
Technical support levels: 82.33 81.52 80.70
Buy at 82.56 SL 82.26 TP 82.96