8 January 2010
USD/JPY: technical analysis
The presuppositions of the lateral movement within the wide range between the resistance at 93.20/50 and support at 91.20/10 are confirmed with the events’ development at the market. The price has fleetingly exercised the level of 93.70/75; though it returned to 93.30/50 for complete and lowered even more up to now – it resides at 93.10/00 now. The version of the trend line of the descendant channel which is marked with the blue line proves its durability as a resistance an? affords grounds for the predictions of the next decrease of the pair. The indicators begin to provide the support for such a probability; R% shows the attempts of the breakage through the SS histogram atop, and MACD demonstrates the probability of the divergence’s creation. The prolongation of the descending movement below 92.70/50 will determine the accomplishment of the scenario of the supports’ exercise at 91.10/00. Meanwhile, until the probability of the growth lasting is more expectable, the price fixation below the mentioned trend line of the descendant channel (the blue line) will signal about the increase till 94.20/40 whereupon the massive retracement to the current raise is possible though with the risks of trades; downfall till 91.30/40.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
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