- Daily: The USD/JPY continues to decline towards 87.00. (Refer to Daily Technical Update 2.25.2010 USD/JPY). Although the decline appears to be stalled at the moment, the stochastic shows that the momentum is strong, and along with price action, which broke a rising support, shows that further decline is likely.
- Bearish mode is maintained as SMA50<SMA200
- Continuation with a 100% swing projection points to 87.00 area, which would also complete a Bullish Gartley and is near 150% extended retracement of the upswing, and above the 78.6% retracement of a larger degree upswing. (The use of extreme low suggests 78.6% retracement of swing should be slightly above the marked 86.70 (ie. 87.00).
- Weekly: Looking at the weekly, we see that the stochastic reflects a new bullish mode, but is in a short-term retracement.
- A bearish signal could develop if the market starts to accelerate further downwards and creates a “m” pattern, and would therefore reflect a failed bullish push.
- Otherwise, look for bottoming action near or above the 87.00 area.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
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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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