USD/JPY 90.19 – 18 March 2010

USD/JPY Open 90.40 High 90.72 Low 89.75 Close 90.30
Dollar/Yen is moving with a slight decrease this week as seen on the 15 minute chart, in line with the negative Bank sentiment projection at around -60%. BoJ kept its economy assessment unchanged for fourth straight month. On Wednesday the currency rose to 90.72, from where decreased down to 90.10, closing the day at 90.30. The 90.00 support was broken down today, and new level at 89.75 is currently limiting the bearish attacks. Break bellow it would confirm Yen’s strength. In the medium term our expectations are neutral till we get clear break out of the wide range 88.18 – 91.98 on the 3 hour chart. First resistance is yesterday’s top at 90.72, and only convincing break above it will confirm Dollar’s strength, while break bellow 89.75 should extend the depreciating channel from this week towards 88.61. There are no major economic events today for Japan besides the already passed Leading and Coincident indicators, and BoJ monthly report at 5:00 GMT. Quotes are currently moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The RSI and MACD indicators are positive and calm, while CCI is negative and climbing on the 1 hour chart, giving overall mixed signals.
Technical resistance levels: 90.72 91.76 92.67
Technical support levels: 89.75 88.61 88.87

Trading range: 90.30 – 89.65
Trend: Downward
Sell at 90.19 SL 90.49 TP 89.79

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