USD/JPY 90.59 – 21 December 2009

USD/JPY Open 90.39 High 90.80 Low 88.98 Close 90.44
Dollar/Yen failed to continue its bearish movement on Friday after reaching the 88.98 bottom, from where it started climbing up to the 90.80 top, closing the week at 90.44. Our expectations are neutral in the short term as the currency pair is in a critical technical point, when the bullish outlook can make a serious turn around. Any strong movement bellow the nearest support and bottom from Friday at 88.98 could be seen as bears’ domination at this stage and lead to further potential weakening of the Dollar towards 87.76. Immediate resistance is represented by the 90.80 level. Penetration above this level may renew the bullish scenario. The CCI indicator is positive, but quite on the 1 hour chart, suggesting short term calm market trading.
Technical resistance levels: 90.80 91.54 92.42
Technical support levels: 88.98 87.76 86.60

Trading range: 90.70 – 90.05
Trend: Downward
Sell at 90.59 SL 90.89 TP 90.19


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