Thursday March 4, 2010 - 20:13:20 GMT
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Daily Technical Update USD/JPY Nears Resistance
USD/JPY Nears Resistance
- 4H: The previous post noted that the USD/JPY is
declining towards 87.00, but was in consolidation. A bullish divergence
also suggested a correction. (Refer to Daily Technical Update 3.3.2010 USD/JPY).
- If the market can reject the rally from advancing above 90.00 area.
The swing to 87.00 can be immediate. However, if the market corrects
further, it is likely that the pair will continue to be choppy as it
has been since Oct. 2009. when the market entered sideways
- Daily: The daily chart shows the swing projection
to the 87.00 level. We see that we are currently at a cluster of
fibonacci levels (123.6% and 61.8%). The market is holding this support
for now, and a close above 89.00 can be an early reversal signal.
- There might be a near-term bullish attempt that can reach the 90.60
area (61.8% retracement in 4H). This would open up for a 2nd swing to
- Remember the USD/JPY has been choppy and a retracement to 61.8% does not invalidate projection to 87.00.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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