USD/JPY Open 89.99 High 91.87 Low 89.78 Close 89.78
Dollar/Yen climbed on Friday to the 90.51 top, from where it started retreating down to the 89.84 bottom, closing the week at 89.78. This morning the Dollar rose, influenced by the possible liquidity increase news from BOJ. If we see a persuasive burst of the nearest resistance and Friday’s top at 90.50, we may expect stronger bullish impulse towards net objective 91.37, but if resistance level holds quotes, that would appear as a good place to trade short. Our medium term expectations are for neutral movements, but in the short term our preferable scenario is bearish, as we can see well shaped downward channel on the 1 hour chart. Consistent break bellow the 89.78 support may open the way to the next downwards target 88.90. The currency pair trades currently between the 20 and 50 EMA, signaling for calm market. Increase in the MACD and RSI indicators signal for strong Dollar. CCI is also positive, but declining on the 1 hour chart. Overall technical indicators give mixed signals, suggesting range trading.
Technical resistance levels: 90.50 91.37 92.44
Technical support levels: 89.78 88.90 88.12
Trading range: 90.45 – 89.80
Trend: Downward
Sell at 90.31 SL 90.61 TP 89.91
Written by iFOREX.bg
