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Strong Resistances

Fri, Apr 11 2008, 15:19 GMT
by Tatsuya Kawanishi

FXstreet.com


The USD/JPY 60 mins chart shows 2 strong resistances, at 102.84 and at 101.94. The first half of the week, the pair fluctuated between 101.94 and 102.84 ( a range of 90 pips ) trying twice to break through the price at 102.84. It was impossible to make further upward movement to break it. Adversely, strong downward pressure emerged and pushed the pair downwards to the 100,00 region. After hitting the week low at 99.99, the pair showed a nice reversal. However, we see the strong resistance area between 101.90 and 102.20. The pair was pushed back again 100.00 region. Macd is positive but declining gradually. Looking at CCI, it just got out of the ovesold condition. The price around 100.70 to 50 could be a nice support level, although the downward pressure is not like to end any time soon. If we see further downward move, next support would be at 100.00. on the other hand, if the pair recovers, it may challenge to break trhough the resistance area between 101.90 and 102.20.


Chart 1


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