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USD/JPY

Tue, May 27 2008, 09:29 GMT
by Tatsuya Kawanishi

FXstreet.com


The USD/JPY daily chart has shown a clear downtrend line since July 2007. The pair hit a remarkable low at 95.62 in March and then moved upwards to the the projected line, drawing a new uptrend line. In early May, the uptrend was broken through and the pair fell to the support at 102.50/60. Macd is moving sideways in the positive territory (divergence is not seen yet). CCI got out of the oversold condition and is now moving upwards, suggesting 10.93. The current situation is considered as neutral. Support is seen at 102,50/60, while the initial downtrend line is considered as resistance (105.00 region).

image 1

Focusing on the 60 minutes chart, we see the pair drawing a gradual downtrend line (blue line). Macd divergence is seen. CCI argues with MACD. CCI is about to get out of the overbought conditon. A break of the projected line suggests that the next target would be 105.00 level. On the other hand, if we see downward pressure, 103.00 and 102,50/60 would be considered good targets.

image 2






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