Tuesday March 16, 2010 - 19:48:48 GMT
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FXTimes: Daily Technical Update USD/JPY Topping Action
USD/JPY Topping Action
- Daily and 4H: I mentioned in the previous video
post that the USD/JPY was showing some signs of weakness with a
rejection from rallying above 91.00. There a deceleration of the market
as we saw in the 4H time-frame, a converging triangle, which the market
looked to break in the previous session. (Refer to Daily Video Technical Update; 3rd pair).
- The daily as shown in the video shows 2 differet degrees of swing
projection, both eyeing the 87.00 area. As we see in the 4H, it is just
above it, near 87.10.
- The 4H time-frame also shows possible supports in the bearish
scenario. The 50% area is a test of bearish strength. The 100% does not
have that much implication, and the 87.00 the upper boundary of a major
- 1H: The 1H time-frame shows details of the action
throughout the Asian-European regional sessions, which is the start of
the current global session.
- The market stalled at the 90.40 area ahead of the Asian session, but dipped as it gone underway.
- However, the start of the European session brought support, but not
before a clearout of the 90.15 support, but was held at the 90.00
psychological support and the SMA200.
- A sharp upswing to start the European session is stalled just ahead
of the US session, and when the US session got underway, the pair
declined, held below 90.70.
- The high of the previous daily session was at 90.85, a note of
bearish direction, despite a surge in momentum seen in the stochastic.
- The market is bearish in the long-term and has been only bullish in
the short-term, but is now turning bearish as well in the short-term.
- This suggests an intermediate-term bearish attempt is getting
underway. Look for a break below 90.00 as a confirmation for the
outlook stated above in the 4H chart analysis.
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
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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