| USDJPY 03-03-10 |
USDJPY
After a tedious week of tight ranges in USDJPY, we may be on the brink of some welcome new developments for the pair. Overnight pressure pushed through our range lows of 88.75, and briefly punctured support below at 88.55 (4 Feb lows) to touch 88.48. Since then, the rebound higher has brought us into contact with a vibration of the 2 week downtrend channel at 88.90; but we note that recent trendline support/resistance has not been particularly useful in helping define price action.
We do however believe that since the 75 pip range has been violated, there is an increasing likelihood that we see a decent move or new trend emerge, and if downtrend vibration resistance holds then expect that move to be on the downside. Next targets below include 88.25 (61.8% fib retracement of 84.83-93.77) and 87.55 prior lows not seen since December.
On the topside the 100 day moving average now comes in at 90.20, backed up by 90.35 (38.2% fib retracement), 90.55 pivot level and the 50 day moving average now coming in at 90.73.
After a tedious week of tight ranges in USDJPY, we may be on the brink of some welcome new developments for the pair. Overnight pressure pushed through our range lows of 88.75, and briefly punctured support below at 88.55 (4 Feb lows) to touch 88.48. Since then, the rebound higher has brought us into contact with a vibration of the 2 week downtrend channel at 88.90; but we note that recent trendline support/resistance has not been particularly useful in helping define price action.
We do however believe that since the 75 pip range has been violated, there is an increasing likelihood that we see a decent move or new trend emerge, and if downtrend vibration resistance holds then expect that move to be on the downside. Next targets below include 88.25 (61.8% fib retracement of 84.83-93.77) and 87.55 prior lows not seen since December.
On the topside the 100 day moving average now comes in at 90.20, backed up by 90.35 (38.2% fib retracement), 90.55 pivot level and the 50 day moving average now coming in at 90.73.
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