Forecast for 4th February 2013
Spot USDJPY
The USDJPY experienced a 13 year bear market from 1998 to 2011 which saw prices bottom at 75.35. The first Fibonacci target for the bounce of the 13 year bear market is at 92.42 and we reached this target on Friday. The market is very overbought on weekly and daily charts and this really should have acted as strong resistance so it is a surprise that we shot through this level like it was not there. The unstoppable 4 month rally closed above 92.42 on Friday which now signals a move to the next target of 93.99 this week.
If we drift lower look for 92.42/34 as first support but below here 91.96 could provide a floor today. However a break below here keeps the market under pressure for 91.52/34 which should be a good buying opportunity today.
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