USDJPY Analysis – February 13, 2010

USDJPY stays in a falling price channel and remains in downtrend from 93.75. As long as the channel resistance holds, we’d expect downtrend to resume and one more fall to 88.00 to reach next cycle bottom on daily chart is possible next week. However, a clear break above the channel resistance will indicate that a cycle bottom has been formed and the fall from 93.75 has completed, then bounce to 92.00-92.50 area could be seen to follow.

For long term analysis, USDJPY has formed a cycle bottom at 84.82 level on weekly chart. Bounce towards 100.00 area is expected after consolidation.

usdjpy daily chart