USD/JPY Daily Technical Outlook: January 25, 2013

DAILY TECHNICAL OUTLOOK ON USD/JPY

Last Update At

24 Jan 2013 23:26GMT

Daily Indicators
Up

Trend Daily Chart
Overbought

21 HR EMA
89.78

55 HR EMA
89.35

Trend Hourly Chart
Up

Hourly Indicators
Overbought

13 HR RSI
80

14 HR DMI
+ve

Daily Analysis
Resumption of MT uptrend

Resistance
91.47 - 1.618 time ext. of 75.32-84.18 fm 77.13
90.92 - 1.618 times ext. of 77.13-82.84 fm 81.68
90.63 - Equality proj. of 86.83-89.67 fm 87.79

Support
89.85 - Y'day's hourly sup
89.45 - Y'day's hourly sup
88.73 - Thur's NY res, now sup

USD/JPY - 90.30 ... Despite dlr's initial brief drop to 88.43, renewed buying there lifted the pair n intra-day upmove gathered momentum after the yen-negative comments fm Japan's Deputy EconMin Nishimura. Price subsequently rallied to a fresh 30-month high of 90.56 near New York close.

Y'day's spectacular rally (213 points) confirms MT uptrend fm 2011 Oct's record low of 75.32 has once again resumed n further gain to 90.92, being 1.618 times ext. of 77.13-82.84 fm 81.68, is likely, however, the very high readings on both daily n hourly oscillators shud prevent strg gain abv there today n reckon 91.47 (1.618 time extension of 75.32-84.18 measured fm 77.13) wud cap upside n yield a much-needed minor correction later. Looking ahead, as the aforesaid MT uptrend is retracing the intermediate LT decline fm 110.67, further gain to 93.00 (natural 50% r of 110.67-75.32) is likely in Q1.

Today, buying dlr on intra-day pullback in anticipation of further rise is the way to go, however, profit shud be taken on next move n one may look to buy dlr again next week on subsequent retreat as 89.45 is expected to remain intact.

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