USD/JPY Candlesticks and Ichimoku Analysis
USD/JPY - 91.54
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Doji |
5 Apr 2009 |
Sideways |
| Daily |
N/A |
N/A |
Down |
The greenback continued to move higher last week and already broke above the Kijun-Sen, however, a weekly close above resistance at 92.33 is needed to confirm low has been formed at 84.82 earlier and bring correction of recent decline to 93.14 (50% Fibonacci retracement of 101.45 to 84.82) and possibly towards 95.10 (61.8% Fibonacci retracement) but the Ichimoku cloud bottom (now at 95.54) is likely to hold for the last trading week of 2009.
On the downside, whilst it is quite likely to see pullback to 90.00, reckon 88.32 support would hold and bring such rise to aforesaid upside targets. Only a weekly close below this support would signal first leg of correction from 2009 low at 84.82 has possibly ended and then retreat to next support at 87.36 would follow, however, still expect dollar to find support above 85.86 and the greenback shall stay well above recent low at 84.82, stage another rebound probably in January 2010.
On the daily chart, the greenback finally closed the Ichimoku cloud as suggested in our previous update last week, reinforcing our bullish view that low has been formed at 84.82 and correction of medium term decline to resistance area at 92.33-55 would be seen later. Above there would encourage for headway towards 93.32 (100% projection of 84.82 to 90.78 measuring from 87.36), however, reckon 94.00/10 would limit upside.
On the downside, although a return move back to the Ichimoku cloud top (now at 90.50) cannot be ruled out, renewed buying interest should emerge around the Tenkan-Sen (now at 90.10) and bring another rally to abovementioned upside targets. Only a drop below minor support at 88.83 would suggest top has possibly been formed and risk test of 88.32, loss of latter support would confirm, then weakness to 87.36 would follow.
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