USD/JPY 91.14 – 22 December 2009

USD/JPY Open 91.09 High 91.48 Low 90.20 Close 91.18
Dollar/Yen made a decreasing effort on Monday, reaching a bottom at 90.20, but failed to break below it and rose sharply to the 91.23 top, closing the day at 91.18. On the 3 hour chart can be seen that this was a case of unconvincing support break down, which triggered significant bullish impulse and contributed to the consistency of the upward scenario. Our preferable scenario for now is for buying Dollar against Yen, but in other hand signals remain neutral in the medium term, as we expect only a significant break above the 91.48 resistance to confirm the bulls domination with objectives towards 92.42, followed by 93.35. First support is yesterday’s bottom at 90.20. Break below it may lead the currency couple further downwards, but our preferable scenario for the time being is bullish. The CCI indicator is positive and leaning upwards, suggesting upwards pressure.
Technical resistance levels: 91.48 92.42 93.35
Technical support levels: 90.20 89.33 88.48

Trading range: 91.00 – 91.65
Trend: Upward
Buy at 91.14 SL 90.84 TP 91.54


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