USD/JPY Open 86.30 High 87.53 Low 85.89 Close 86.34
Dollar/Yen experienced further descending on Monday, reaching depths of 85.89, where further bearish momentum was limited, closing the day at 86.34, and sharply turning upwards this morning, reaching the 87.53 peak. Besides the convergence formed, which gave good increasing signal, the news for the Japanese government market intervention to weaken the Yen in favour of their stocks was also effective towards the Dollar. Signals are expected to remain bullish with targets towards 87.50. Further government intervention may continue to push the currency couple up. The nearest support is 85.89, the breach of which may trigger further downward impulse, which is our preferable scenario in the longer term. The CCI indicator is in the overbought zone and also downwards on the 1 hour chart, suggesting bearish pressure.
Technical resistance levels: 87.53 88.37 89.16
Technical support levels: 85.89 85.15 84.20
Trading range: 87.05 – 86.40
Sell at 86.92 SL 87.22 TP 86.52
Written by iFOREX.bg