USD/JPY Open 90.38 High 91.87 Low 89.78 Close 90.39
Dollar/Yen climbed to the 91.87 top on Thursday, from where made a sharp drop down to 89.78 bottom, as a result of the US president Obama’s proposal for financial institutions trades’ restrictions, closing the day at 90.39. The event caused withdrawal of investments in high yield assets, leading to lower trading volumes of the Dollar. Today, however, the Dollar responded with upward correction, which may, however, run out of steam shortly due to lack of enough steam. If we see a break bellow the 89.78 support, the depreciating may continue further down, towards next target 89.00. We expect only recovery of yesterday’s losses above 91.87 to be able to put the Dollar back on the bullish track. Quotes are currently moving bellow the 50 and just crossing down the 20 EMA, indicating new descending channel, as seen on the 15 minute chart. RSI is in the overbought area, signaling for a possible exhaustion of the bulls, while CCI and MACD are neutral and leaning downwards on the 1 hour chart, supporting strong Yen.
Technical resistance levels: 91.77 92.55 93.43
Technical support levels: 89.78 89.00 88.12
Trading range: 90.65 – 90.05
Sell at 90.55 SL 90.85 TP 90.15
Written by iFOREX.bg