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Reversal?

Fri, Mar 14 2008, 15:13 GMT
by Tatsuya Kawanishi

FXstreet.com


The USD/JPY 60 min chart has shown a clear downtrend channel of a 200 pips-range. On Mar 13, storng downward pressure bounced the pair out of the channel and established a remakable low price at 99.75. The pair did not break the support level at 99.75 although it tried twice. That could be seen as a “Double Bottom Pattern” where a bounce back is often seen.

The downtrend line is not likely to end any time soon. However, the pair is now trying to get back inside the projected line of the downtrend channel. Once the pair gets back inside the channel, it might move upwards. The 102.00 region would be considered as a traget. If we see further bearish momentum, the price between 99.80 and 100.00 would be a good entry for a long position.

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