USD/JPY 90.98 – 20 January 2010

USD/JPY Open 91.17 High 91.05 Low 90.35 Close 91.13
The declining of Dollar/Yen on Tuesday was stopped by the 90.35 support, from where the currency couple bounced upwards, and climbed to the 91.25 level, closing the day at 91.13. After reaching higher top this morning at 91.35, Dollar started weakening against the Yen. Our preferable scenario for now is descending, towards yesterday’s bottom 90.35. Convincing break bellow it would confirm continuation of the downward channel seen on the 1 hour chart, with next objectives towards 89.50. The nearest resistance is today’s top at 91.35. Going above that level may push the bulls further up and get the currency pair back in the bullish channel in the medium term, as seen on the 3 hour chart. The trend, in the short term, however, is expected to remains downward for the pair. Quotes currently remain bellow the 20 and 50 MA, which gives us descending trading signals. The CCI and MACD indicators are negative and leaning downwards, suggesting bearish pressure.
Technical resistance levels: 91.35 92.10 92.93
Technical support levels: 90.35 89.50 88.62

Trading range: 91.10 – 90.45
Trend: Downward
Sell at 90.98 SL 91.28 TP 90.58

Written by