USD/JPY 90.58 – 19 March 2010

USD/JPY Open 90.48 High 90.72 Low 89.75 Close 90.35
Dollar/Yen is trading hesitantly this week within the small 89.75 – 90.89 range, as seen on the 15 minute chart, in converse with the very negative bank sentiment at around -59%. On Thursday the currency couple dropped down to 89.75, from where it rose to 90.70, closing the day at 90.35. The break of 90.00 support shows vulnerability of the Dollar, which, however still holds the bearish attacks at the new 89.75 support. Break bellow it would confirm Yen’s domination at this stage. In the medium term our expectations are neutral till we get clear break out of the wide range 88.18 – 91.98 seen on the 3 hour chart. First resistance is yesterday’s top at 90.72, and only consistent break above it will give Dollar an advance, 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 METI all industry activity at 4:30 GMT. Quotes are currently moving just above the 20 and 50 EMA on the 1 hour chart, indicating slight bullish pressure. The RSI indicator is positive and declining, while MACD and CCI are positive and calm on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 90.72 91.76 92.67
Technical support levels: 89.75 88.61 88.87

Trading range: 90.70 – 90.05
Trend: Downward
Sell at 90.58 SL 90.88 TP 90.18

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