USD/JPY 88.35 - 8 October 2009

USD/JPY Open 88.69 High 89.36 Low 88.00 Close 88.58

Dollar/Yen failed to continue the upward correctional movement on Wednesday, after reaching a top at 89.36, went down to the 88.00 bottom, closing the day at 88.58. On the 3 hour chart the upward pressure couldn't hold prices over the 89.35 resistance before dropping. This fact confirms that the downward trend remains intact and the upper limit of the channel is a good place to enter short positions. Potential ascending rebound with possible re-testing of the 89.55 resistance would not come unexpected. Lack of any convincing movement above the resistance level may trigger stronger downward momentum with objectives towards yesterday's bottom 88.00, followed by 87.05. The CCI indicator is neutral on the 1 hour chart, suggesting calm trading.

Technical resistance levels: 89.35 90.45 91.50

Technical support levels: 88.00 87.05 85.90

Trading range: 88.45 - 87.85

Trend: Downward

Sell at 88.35 SL 88.65 TP 87.95

Already made +18 pips profit on USD/JPY today from the following signal:

5:39 GMT+1 Sell USD/JPY at 88.33 SL 88.59 TP 87.83 exited at 8:23 GMT.

Total today +156, yesterday +118, as shown at