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USD looking fragile against ineffective Yen

Mon, Nov 2 2009, 09:26 GMT
by Anthony Boyajian

Finotec Group Inc.


Long signalShort signal
Buy a break of resistance level at 92.50Sell a break of support level at 89.80
EUR/USDBuy a break of resistance level at 93.30Sell a break of support level at 88.80
Buy a bounce at 89.80Sell a failure of breaking the resistance 92.50


Fundamental

The Japanese Yen pushed higher in overnight trading as the Bank of Japan skirted a confrontation with the Ministry of Finance and moved to end their purchases of corporate bonds while the jobless rate fell for the second consecutive month on government hiring The Bank of Japan kept interest rates unchanged at 0.10% as expected and struck a narrow balance between competing interests at the central bank and the Ministry of Finance (MOF), saying it will allow its program of purchasing corporate debt expire as scheduled in December but kept its government bond purchases at 1.8 trillion as before.


Technical

U.S. Dollar still in a downtrend against Japanese Yen, as we can see strong supply in the market, based on technical indicators like RSI, which is in a clear downtrend, MACD crosses the signal line with a break of equilibrium level and Bollinger band gives us a bearish signal by closing the candle below the middle band.

USD/JPY (Daily Chart)

The primary tendency is in a clear downtrend within standard error channel.

USDJPY

USD/JPY (4 Hour Chart)

The pair forms a failure swing formation.

USDJPY

USD/JPY (Hourly Chart)

The Minor is in a downtrend.

USDJPY

Resistance
92.50
93.30

Support
89.80
88.80


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