The Daily Forecaster: USDJPY
Price: 89.22
| Resistance |
89.49 |
89.82 |
90.04 |
90.26 |
90.46 |
90.86-02 |
| Support |
88.79 |
88.33 |
87.80 |
87.62 |
87.36 |
86.90-95 |
Bias: Cautiously, while 89.49 holds I feel we should see extension to 88.33 before a larger correction higher
The underlying MT direction is bearish while the daily bias is bearish. Therefore the main risk is lower. Ensure that key resistances levels hold. Note key support levels that would suggest continuation of the bearish move. Consider confirming this with a bearish set up pattern in price or an indicator. Only consider a possible larger reversal higher should key MT resistance break and is supported by a bullish set up in price or an indicator.
Consider buy set ups at: 88.30-40 or 89.50-55
Consider sell set ups at: 88.49 or 88.25
Daily Bullish
The 88.76 target was met with 3 pips variance. The resistance at 89.50 is critical and while it holds there is probably a stronger risk that we'll see 88.33 first. Watch for a bullish trade set up there as this should trigger a deeper pullback. Only an earlier break above 89.50 would extend gains more directly to 90.04-26. However, that should be the most we see.
Medium Term Bullish
25th February: Only back above 90.30 will trigger a larger reversal otherwise wait for a test of the 86.90-00 support for a stronger recovery.
Daily Bearish
The bounce from the 88.79 low has reached key resistance at 89.50. Cautiously, while this remains intact I feel we should see a return to the 88.79 area, a second (but shallower) correction before follow-through to the 88.33 target. That should hold. Only an earlier break above 89.50 would test the 90.04-26 resistance and that should be observed for bearish trade set ups.
Medium Term Bearish
24th February: While 90.50-85 caps look for losses to 88.33-76 and eventually to the 86.90 target
Ian Copsey
FX-Forecaster
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