- 4H: The USD/JPY was on its way to 87.00 swing projection last week. (Refer to Daily Technical Update 02.26.2010 USD/JPY). To start the week, the pair stays supported at the 88.80 area for a second time.
- This brings the pair to a consolidation mode, and with stochastic rolling over, it looksl ike the market is picking up some momentum. IF the market breaks above 88.50 a double bottom would form, and there is a pattern breakout projection to 90.00 (38.2% retracement).
- The 87.00 target could still be viable if the market stays below 90.00 area. This is also where the pair is likely to meet both 50, and 200 SMAs.
- Topping action near 90.00 and bearish signal spells strong move towards 87.00 to follow.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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