USD/JPY 89.34 – 8 February 2010

USD/JPY Open 89.27 High 89.81 Low 88.83 Close 89.19
Dollar/Yen at first traded hesitantly on Friday, than bears took over the race and the currency couple declined down to 88.83, closing the week at 89.19. Today the USD/JPY is moving quietly because of economic data absence. In the appearance of next catalyst events our expectations are for the Yen to continue strengthening against the Dollar. Going bellow Friday’s bottom 88.83 may give the Yen further gains towards next target 88.30. Persuasive break above the nearest resistance at 89.81 may strengthen the Dollar further towards the top from last Thursday 91.06. Prices are currently bellow the 50, and just crossed up the 20 EMA, signaling for possible intraday appreciative adjustment, and continuation of the bearish trend in the longer term. The RSI indicator is positive and rising, MACD is slightly rising, while CCI is positive with upward incline on the 1 hour chart. Overall, indicators signal for bullish pressure for the pair.
Technical resistance levels: 89.81 91.06 91.80
Technical support levels: 88.83 88.30 87.39

Trading range: 89.20 – 89.85
Trend: Upward
Buy at 89.34 SL 89.04 TP 89.74

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