USD/JPY 88.59 – 3 March 2010

USD/JPY Open 88.76 High 89.36 Low 88.46 Close 88.84
Dollar/Yen decreased on Tuesday, as expected, down to 88.61, closing the day at 88.84. After reaching the lower bottom this morning at 88.46, the currency couple started rising, as Dollar was getting stronger across the board. Our expectations today are for the main bearish trend to continue, after potential bounce up movements towards the first resistance 88.46. The Yen’s strength will be confirmed if we see convincing break bellow this morning’s bottom and first support for today at 88.46. There are no economic events today for Japan, besides the Capital spending Q4 at 23:50 GMT. First resistance is yesterday’s top at 89.36, the break up of which may lead to further Dollar reinforcement towards next objective 89.45. Quotes are currently above the 20 and bellow the 50 EMA, warning for bullish corrections. The RSI and CCI indicators are positive and rising, while the MACD is positive and slightly inclining upwards on the 1 hour chart, giving overall long signals.
Technical resistance levels: 88.46 89.45 90.30
Technical support levels: 88.46 87.60 86.69

Trading range: 88.45 – 89.10
Trend: Upward
Buy at 88.59 SL 88.29 TP 88.99

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