5 January 2010
USD/JPY: technical analysis
The price has never managed to increase higher than the level at 93.20 and as already expected it started the rollback downward within the frames of the retracement to the growth. However, the consolidation range having been determined in the previous analysis was widened a little by means of the support’s decrease till the level of 91.80 – the already broken trend line of the long-termed descendant channel (the green lines) – exactly where the trades are carried now. The indicators demonstrate the confident returning to the descending movement –R% and SS have reversed downward, MACD has lowered the histograms till the balance line, though it still stays within the positive sector. The present situation reasons the probability of the retracement’s continuation till lower support’s levels – 91.10/00 and furthermore even till 90.70. The trading fixation lower than 91.80 will signal such prospects exactly. Meanwhile, until the breakage doesn’t take its place still yet the lateral movement will last within the range edged with the resistance at 93.20/50 and support at 91.80/70.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
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