UsdJpy: dollar tries to consolidate at 92.42

The price is trying to consolidate at the support, once resistance, at 92.42 yens per dollar. Once the price created a strong level, we can start thinking that the price will follow the trend to find 92.757.

If the price isn’t able to hold that level, we will go to 92.059 and try to break it again.

Continued weakness in the pair has taken it to an extremely important support level at 90.86. The medium term uptrend channels are now completely wiped out so this support level will be the only thing for the long players to cling onto. A break here targets 88.60 which also coincide with one of the 2 year downtrend channels.

Expect intraday short interest at 91.80 and 92.47, I think those will be the opportunities for today�

lol so jean where are the fundamentals here?

The USDJPY fell to 90.20 before rallying back to 90.70. Interestingly, the correlation between the JPY and equity markets continues to fall, while USD/JPY and DXY correlation has significantly increased, did you notice?..
I think that the recent JPY strength will force fx traders to consider the spillover effect to Japanese exporters� earnings witnessed in today’s Nikkei sell off.

In the days to come, babypips traders expect for Japanese policy markets to become increasingly vocal with their dissatisfaction. Because of this, I advice you specifically focus, I know I will, on Tuesday�s BoJ monetary policy meeting and the central bank�s accompanying statement.

Fundamental enough? :smiley:

The BoJ does things a little different…they tend to make their [B]most[/B] important announcement [B]before[/B] their monetary policy meetings. :smiley:

[B]Japan May Need to Buy Stocks, Ex-BOJ Deputy Muto Says (Update1) [/B]

Japan May Need to Buy Stocks, Ex-BOJ Deputy Muto Says (Update1) -

Heavy JPY buying puts the USDJPY focus back on 90.0 support; then 89.71. Resistance at 92.60 (61.8% retrace) high.

Sorry I don�t put any more analysis, but I have to work today and wont be doing any trades this session…

The Bank of Japan is still worried about the recovery’s strength. This is the reason why it decided to maintain the interest rates at 0.1% and the emergency programs for banks and corporations.
This made the euro, dollar and sterling climb against the yen.

I still believe the JPY is overbought and still remains a risk trade. When the USD stabilizes, then JPY will be next to come under significant selling pressure

I think today we can expect the price to correct and consolidate the rupture. The key level for today is 92.264. If it breaks that level, soon it should move to 93.308. If not, the yen should form a good resistance between 92.624 and the fibo 61.80% (right now it does) and then hit lower lows. The 92 level was a very psychological level. Going back to those levels is a big step for the dollar, don�t you agree?

This is the only G10 pair where the dollar is climbing. UsdJpy is now trading at 91.34.

Tomorrow we’ll have the BoJ’s meeting and its rate decision. Even though I don’t expect a shift I�ll watch the announcements about Japan’s economic situation. Remember that the new Finance Minister said the labor market will keep declining, as well as the GDP.

I saw on Tuesday that 92.50 would likely cap UJ despite it being outside of the 6 week downtrend and after one touch of the level the pair has resumed its downtrend to retest the lows at 90.20. The picture does not look great for the bulls as the 4 hourly RSI has more room to go before becoming oversold. Expect 90.20 to provide some intraday bounces as some short covering occurs but ultimately there is a strong chance that the level breaks. For those searching a short entry point, the downtrend now comes in at 91.20 and 91.70 / 80 is the first significant resistance. A break below 90.20 targets 89.71 and 88.60 thereafter.

The yen ended Friday with a big short thrust, climbing to 89.5 yens per dollar. After this large move, the RSI marked oversold, creating a good support at that level. However, during the night in Europe, the price got to 88.237 creating a possible turning point. To that, we marked a fibo from 91.606 to 88.246. The price has arrived to the fibo 38.20% right now. To the upside, breaking today’s high at 89.652 will be fundamental to keep forming higher lows. If it doesn’t break resistances, the price will, at least, go to 88.246 yens per dollar. The supports will be those created this morning: 89.35 and 88.817 yens per dollar

[B]jean trades too[/B]

Have you ever considered the possibililty that there might be a re-alignment in progress where old alliances are a thing of the past and the YEN is finally moving to PA levels that reflect it’s value as the currency of Japan instead of being [ab]used as a USD “walking stick”…?

Might go a long way in explaining the recent YEN behaviour. :wink:

hi to every one


I am not quite sure whether you’re a bot and/or spammer or what the heck you’re intentions are for posting one liners in forums around the net.

But what I am pretty sure about is that you are [B]NOT[/B] interested in trading FOREX. :smiley:

I saw on Friday that the trend remained down on all time frames and that is still true however after the non farm payrolls the pair dropped nearly a whole figure and tested the major support at 88.59 which has held very well.
Notice that on both occasions UJ tested that level it does not hang around for very long and the buying interest is immense.
I think you should expect a continuation of this pattern with shorts at 90.20 and 90.60 and obviously long interest and short covering on that major support at 88.60 / 70.
Good trading!!!

PS: I agree cas, hate when people spam!!! They taint the thread!!!

USDJPY broke yesterday’s triangle formation to the downside, and on the open today took out support at 88.60. Minor support at 88.20 seems to have slowed the sell-off for now but a close below this 88.60 level opens up the 87.10/15 lows, with stops en route below 88.00.

USDJPY rallied higher after Bernanke comments but was again stalled into 89.40-50 resistance. The pair has found good support at the lower downtrend channel of the entire 6 month down move around the 88.23 level but a break lower would be targeting the 14 year low of 87.07.
Happy weeked!!!

USDJPY rallied higher after Bernanke comments but was again stalled into 89.40-50 resistance.
The pair has found good support at the lower downtrend channel of the entire 6 month down move around the 88.23 level but a break lower would be targeting the 14 year low of 87.07, did you notice?

10 week downtrend on USDJPY was still playing out nicely and that 90.00 level represented a decent short entry. After touching 90.03 intraday the pair has now fallen to the 89.00 region and the downtrend is obviously still intact and deserves respect…

As long as the Japanese Minister of Finance keeps restating the new view out of Japan that the level of the Yen is no longer an obsession with the monetary authorities of that nation.

Once that changes…the downtrend has lost it’s respect. :smiley: