Technically speaking, the USD/JPY overcame some notable topside barriers during the month of December, most notably the psychological 90 level and a few heavily-weighted downtrend lines. Speaking of downtrend lines, our 2nd tier downtrend line could prove to be a key barrier since it runs through August ’09 highs. Hence, an eclipse of our 2nd tier could potentially yield a medium-term run towards the 97.50 area. Meanwhile, the USD/JPY does face multiple downtrend lines along with September highs and the psychological 95 zone. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with 12/31 and 12/24 lows. Furthermore, the psychological 90 area could serve as a suitable cushion should it be tested.
Present Price: 92.83
Resistances: 92.95, 93.14, 93.30, 93.59, 93.85, 94.02
Supports: 92.61, 92.23, 91.95, 91.78, 91.57, 91.37
Psychological: 95, 90, September Highs