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Daily Forex Technical Report − USD/JPY

Wed, Jan 28 2009, 08:25 GMT
by ActionForex.com Team

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USD/JPY's recovery lost steam after hitting 90.09 and intraday outlook is turned neutral since then. With 91.29 resistance intact, there is no confirmation that fall from 94.61 has completed. Below 87.97 minor support will flip intraday bias back to the downside first. Further break of 87.13 low will confirm medium term down trend has resumed. On the upside, above 90.09 will indicate that rise from 87.12 is still in progress. Further break of 90.09 will revive that case that fall from 94.61 has completed. Also, in such case, consolidation from 87.13 is likely in progress and another rise would be seen to retest 94.61 before resuming medium term down trend.

In the bigger picture, with USD/JPY still staying below 55 days EMA, fall from 110.66 should still be in progress. On resumption, such decline should target 100% projection of 124.13 to 95.77 from 110.66 at 82.3. However, considering bullish convergence condition in daily MACD, decisive break 94.61 will be an important alert that whole decline from 110.66 has completed, with a double bottom reversal pattern. Stronger rise should ten be seen to test medium term falling trend line resistance (now at 105.65).


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