USD/JPY Technical Analysis 7 October 2009

on October 07 2009 6:06 AM

USD/JPY 88.34 - 7 October 2009
USD/JPY Open 88.71 High 89.64 Low 88.09 Close 88.80

Although insignificant, Dollar/Yen continued making downward movements within the descending channel on Tuesday. On the 3 hour chart quotes corrected upwards and tested the upper limit and resistance at 89.35, indicating a fight between bulls and bears. We don't expect bullish outlook for now, as the currency couple is not moving continuously above the trend line yet, currently around 90.20. Even if the downward momentum starts losing its strength, it is premature for upward perspectives, besides the small corrections. Our preferable scenario is downwards, with targets towards 87.00, followed by 86.10. The CCI indicator has crossed down the 100 line on the 1 hour chart, suggesting accumulated downward pressure.

Technical resistance levels: 89.00 89.95 92.15

Technical support levels: 88.10 87.00 86.10

Trading range: 88.45 - 87.80

Trend: Downward

Sell at 88.34 SL 88.64 TP 87.94

Already made +50 pips profit on USD/JPY today from the following signal:

5:37 GMT+1 Sell USD/JPY at 88.80 SL 89.06 TP 88.30 TP reached at 7:53 GMT.

Total today +118, yesterday +160, as shown at www.zifx.com/performance.php

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