USDJPY: Seeks For A Direction

USDJPY: The pair continues to struggle and search for a direction but while trading within its established long term falling channel, it retains its medium term downtrend bias. As that continues to shape up, risk is seen towards its Mar 01’10 high at 89.47 with a clean break through there setting the stage for a further push lower towards its Mar 04’10 low at 88.12 ahead the 87.35 level, its Dec 09’09 low. However, the threat to our analysis will be a break and close above the 91.07 level, its Mar 12’10 high followed with a decisive violation of its channel resistance currently at 91.65. Above there will put our downside view on hold and bring further strength towards the 92.13 level, its Feb 19’10 high with a turn above there calling for more gains towards the 93.74 level, its 2010 high. In a nutshell, the pair remains vulnerable to the downside as long as it maintains within its falling channel.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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