USD/JPY 88.08 – 9 December 2009

USD/JPY Open 88.38 High 89.42 Low 87.36 Close 88.41
Dollar/Yen continued descending on Tuesday, as expected, reaching the 88.18 bottom, and closing the day at 88.41. This morning the currency couple extended its weakening towards 87.36. On the 3 hour chart the Dollar started the bearish momentum after the strong rising formation at the end of last week, which indicates potential downward pressure. The long term bullish scenario may still remain intact, but in the short term our expectations are in favour of the bears. Break bellow the nearest support and today’s bottom 87.36 might lead to a further descending impulse with potential test of the lower limit of the downward channel at 86.60, and could seriously threaten the bullish scenario. The nearest resistance is 88.66. The CCI indicator is leaning downwards on the 1 hour chart, suggesting insignificant bearish pressure.
Technical resistance levels: 88.66 89.15 90.09
Technical support levels: 87.36 86.60 85.81

Trading range: 88.20 – 87.55
Trend: Downward
Sell at 88.08 SL 88.38 TP 87.68


Written by