- 4H: The USD/JPY is in a bullish trend in the short-term, but I suspect it is going to push it to the intermediate term, which can project to 98.00. (Refer to Weekly Technical Update 2.19.2010).
- The market is current in a near-term retracement and testing the 61.8% and 23.6% retracement levels near the 91.20 area.
- So far the market looks like its in a strong bearish retracement, and if the current retracement level doesn’t hold, the next possible is the 90.75 area.
- But looking at the 1H time-frame, it has completed a retracement pattern.
- 1H: Here, we can see that if the market reverses now, with confirmation from a broken trendline, the pair can swing to the 92.70 area in the short-term.
- Another confirmation could be the stochastic rolling out of oversold zone. One thing to note from the stochastic is the bearish aggression that brought the oscillator oversold. This suggests caution on the 100% projection.
- Check for resistance earlier at the 92.10 area.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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