USD/JPY 89.15 – 2 March 2010

USD/JPY Open 89.21 High 89.45 Low 88.75 Close 89.12
Dollar/Yen rose on Monday after the decreasing data of unemployment rates to very low level came out. The currency couple climbed from 88.75 up to 89.45, closing the day at 89.12. Our expectations today are for the main downward trend seen on the 3 hour chart to continue, especially if we see convincing break bellow yesterday’s bottom and first support for today at 88.75. As the above support is a double bottom from Friday and Monday, its downward penetration is a must in order to open way for the descending channel continuation. There are no economic events today for Japan. First resistance is yesterday’s top at 89.45, the break up of which may strengthen the bulls further towards 90.30. Quotes are currently bellow the 50 and 20 EMA, indicating descending pressure. The RSI and MACD indicators are neutral and quiet, while the CCI is negative and inclining upwards on the 1 hour chart, giving overall mixed signals.
Technical resistance levels: 89.45 90.30 91.27
Technical support levels: 88.75 88.06 87.34

Trading range: 89.25 – 88.65
Trend: Downward
Sell at 89.15 SL 89.45 TP 88.75

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