USD/JPY 88.86 – 8 December 2009

USD/JPY Open 89.36 High 90.50 Low 88.59 Close 89.48
Dollar/Yen continued its bearish movement on Monday, as expected, from 90.50, reaching a bottom at 89.16, and closing the day at 89.48. Of the 1 hour chart the 89.72 support was drilled down, indicating completion of the bullish correction and renewal of the bearish channel with objectives towards 87.92, before attacking the key support level at 87.00. The nearest resistance is 89.41. Break above this level might lead the currency pair into new correction in the near term, but overall our preferable scenario is bearish for now. The CCI indicator is leaning downwards on the 1 hour chart, suggesting insignificant bearish pressure.
Technical resistance levels: 89.41 90.10 90.74
Technical support levels: 88.59 87.92 87.00

Trading range: 89.00 – 88.35
Trend: Downward
Sell at 88.86 SL 89.16 TP 88.46


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