- 4H: The USD/JPY has paused and is creating a range that may be slightly tilting down. The market continues to consolidate as it did to start the week. (Refer to Daily Technical Update 3.1.2010 USD/JPY).
- Today, the market is tested the 88.50 level , which held. The stochastic is forming a divergence with price, so there is likely at least a short-term rally. The US session may see a rally, but would find resistance at the 89.20 area. The market may top off here and continue the decline.
- Daily: Unless the market breaks above 89.50, it is projected to the 87.00 area.
- This is a cluster of 150-161.8% extended retracement as well as 78.6% retracement.
- Look for a bottoming action here as there should be support. Then look for the market to make another attempt at cracking its long term trendline, which is coinciding with the SMA 200 at the moment.
- Furthermore, the stochastic is crossing over, but it is too premature to call any bullish outlook.
- There are some bullish forces in the near and short-term, but look for short/intermediate term action to be bearish towards 87.00.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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