USD/JPY 87.75 – 3 December 2009

USD/JPY Open 87.62 High 87.91 Low 86.61 Close 87.37
Dollar/Yen climbed on Wednesday, as expected, up to the 87.66 top, closing the day at 87.37. The upward adjustment scenario, which had created convergence, remains intact, but has now found good resistance at 87.91. Middle term signals are expected to be neutral. In the short term unless we see a convincing break bellow 86.61, the bullish correctional scenario should remain valid, especially if quotes manage to break above 88.62, with next objectives towards 89.74. The threat of the Japanese government intervention in favour of the Dollar offers good opportunities for long positions. The CCI indicator is neutral on the 1 hour chart, suggesting calm trading within range.
Technical resistance levels: 87.91 88.62 89.74
Technical support levels: 86.61 85.92 85.12

Trading range: 87.65 – 88.25
Trend: Upward
Buy at 87.75 SL 87.45 TP 88.15


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