Wednesday March 24, 2010 - 18:57:30 GMT
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FXTimes: Daily Technical Update USD/JPY Tests Long-Term Trendline after Breaking Intermediate Trendline
USD/JPY Tests Long-Term Trendline after Breaking Intermediate Trendline
- Weekly: The USD/JPY pair has been in a choppy
bearish trend since summer of 2007. In the weekly time-frame, we see
the market break an intermediate trendline, while testing a long-term
trendline, which extends to 2007.
- The market looks poised to break this level as well, and soon to complete a reverse head and shoulders.
- The stochastic is showing strength since the clear-out action in December 2009, which was really a hint of strength.
- Daily and 4H: There was an anticipation of a
decline to break from the recent sideways consolidation. However, the
market never closed below the 90.00 level, which was a required signal
for the bearish outlook in the short-intermediate term. (Refer to Weekly Technical Update 3.19.2010).
- At the moment, the market looks to break the long-term trendline as well IF it breaks above the previous high at 92.15.
- The market may seem very strong right now, but be cautious against
jumping on this premature bullish signal. I would still wait to see if
the market reaches a short-term swing projection near 93.0.
- Then, if a decline stays above the 91.0 area, it can be considered a throwback, and a confirmation.
- The rally DOES however, invalidate the bearish outlook, seen in the 4H chart.
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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