[B]DAILY TECHNICAL OUTLOOK ON USD/JPY
Last Update At [/B]
28 Jan 2013 00:25GMT
Trend Daily Chart
Up
Daily Indicators
Bearish divergences
21 HR EMA
90.85
55 HR EMA
90.28
Trend Hourly Chart
Up
Hourly Indicators
Bearish divergences
13 HR RSI
62
14 HR DMI
+ve
Daily Analysis
Consolidation b4 upmove resumes
Resistance
92.12 - Jun 14 2010 high
91.47 - 1.618 time ext. of 75.32-84.18 fm 77.13
91.26 - Intra-day high (NZ)
Support
90.25 - Last Mon’s high
89.85 - Hourly chart
89.45 - Last Thur’s Asian high
USD/JPY - 90.85 … The greenback continued its MT strg upmove last week due to broad-based weakness in yen n made hefty gains for ‘11 consecutive weeks’ , price climbed to a fresh 2-1/2 year peak of 91.20 in Fri’s NY morning session.
Looking at the daily chart, despite abovementioned meteoric ascent fm its record low at 75.32 made in Oct 2011, as daily technical indicators are now displaying minor ‘bearish divergences’, suggesting the pair is unlikely to repeat its sharp rise this week n reckon 93.00, being a ‘natural’ 50% correction of the intermediate long-term downtrend fm 110.67 (2008 peak) to 75.32, wud hold n risk is seen for the buck to make a long-overdue correction. On the downside, a daily close below 90.25 (previous top, now sup) wud be the 1st signal the much-awaited correction has taken place n yield subsequent weakness twd 88.06.
Today, intra-day pullback fm a fresh 30-mth peak at 91.26 in NZ suggests initial consolidation is in store, however, as long as 90.25 holds, outlook remains mildly bullish for resumption of uptrend to 91.45/50, however, upside is expected to falter well below minor daily res at 92.12 n yield decline.
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