USDJPY Analysis – November 6, 2010

USDJPY stays below a falling trend line from 94.98 to 85.92, and moved sideways in a trading range between 80.30 and 81.98 for several weeks. The price action in the trading range is more likely consolidation of downtrend from 94.98. As long as the trend line resistance holds, downtrend is expected to continue and another fall towards 79.75 (1995 low) is still possible, only a clear break above the trend line resistance could indicate that the fall from 94.98 is complete.

For long term analysis, USDJPY remains in downtrend from 94.98, further decline towards 79.75 (1995 low) would more likely be seen.

usdjpy daily chart