USD/JPY Open 88.67 High 89.41 Low 88.30 Close 88.58
After quiet Monday, on Tuesday Dollar/Yen resumed descending, in line with the strong negative Interbank sentiment at around -66%. The currency couple depreciated from 89.41 to 88.30 yesterday, closing the day at 88.58. Today the pair is moving hesitantly for now. On the 1 hour chart the downward channel is intact, while on the 3 hour chart the lower limit of the wide trading range was broken down. Break above yesterday’s top and nearest resistance 89.41 would support further recovery of the Dollar. Immediate support is yesterday’s bottom at 89.41, and consistent break bellow it could strengthen the Yen further towards next target 87.50. Today Japan Housing starts, and the Construction orders, all at 5 GMT. Quotes are moving just above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term upward correction and middle term bearish pressure. The value of the RSI indicator is positive and consolidating, MACD is negative and inclining upwards, while CCI has just crossed up the 100 line and is inclining upwards on the 1 hour chart, giving overall light long signals.
Technical resistance levels: 89.41 90.71 91.55
Technical support levels: 88.30 87.50 86.45
Trading range: 88.80 – 88.15
Sell at 88.69 SL 88.99 TP 88.29
Written by iFOREX.bg