USDJPY Analysis – Oct 4, 2008

USDJPY is in consolidation to down trend. Rise towards 108.50 to reach the next cycle top on daily chart is expected next week. Initial support is at 103.49, a break of this level will signal resumption of down trend, and deeper decline could be seen to 101.50 zone.

For long term analysis, USDJPY formed a cycle top at 110.66 on weekly chart. Pullback towards 100.00 zone to reach next cycle bottom is now in favor. In a bigger picture, the pair formed a long term cycle bottom at 95.77 (Mar 17 low) on monthly chart and is in long term up trend. Further rise towards 120.00 is possible.

usdjpy daily chart