USDJPY Analysis – November 7, 2009

USDJPY has formed a trading range between 88.01 and 92.32. Sideways movement in the range is expected in a couple of week, and another rise to 95.00 would more likely be seen after consolidation. However, a breakdown below 88.01 will indicate that the fall from 101.43 has resumed, then deeper decline could be seen to re-test 87.12 long term support.

For long term analysis, USDJPY might be forming a cycle bottom at 88.01 level on weekly chart. Key resistance is at 92.53, a breakout of this level will confirm the cycle bottom.

usdjpy daily chart