DAILY TECHNICAL OUTLOOK ON USD/JPY

Last Update At

15 Jan 2013 23:22GMT

Trend Daily Chart
Up

Daily Indicators
Easing fm o/bot

21 HR EMA
88.85

55 HR EMA
88.94

Trend Hourly Chart
Sideways

Hourly Indicators
Rising fm o/sold

13 HR RSI
45

14 HR DMI
+ve

Daily Analysis
Choppy consolidation to continue

Resistance
90.00 - Psychological res
89.67 - Mon's high
89.12 - Y'day's Asian res

Support
88.28 - Y'day's low
87.98 - Jan 10 NY sup
87.40 - Jan 09 European sup

USD/JPY - 88.80 ... Despite y'day's initial brief rise to 89.63 in Asia y'day, failure to penetrate Mon's 30-month peak at 89.67 together with the yen- supportive comments fm Japanese ECOMIN Amari triggered massive profit-taking n price subsequently tumbled to 88.62 in Tokyo midday n then 88.28 b4 recovering.

Y'day's sharp selloff confirms MT uptrend fm 2011 Oct's record low of 75.32 has indeed made a temp. top at 89.67 n few days of 'choppy' consolidation is in store, possibly until BOJ's policy meeting held on next Mon n Tue, n as long as 89.12 res holds, another corrective decline to 88.28 is still likely, below wud bring a stronger retrace. of intermediate rise fm 86.83 to 87.91/98 (61.8% r of 86.83-89.67 n chart sup), however, anticipated low readings on hourly oscillators shud limit downside n reckon 87.23/40 sup area shud contain downside n yield strg rebound later. On the upside, a daily close abv 89.35 wud signal aforesaid upmove has once again resumed to 89.67 n then twds 90.00.

Today, selling dlr on intra-day recovery is recommended in anticipation of another drop but one can buy there for prospect of a rebound.