USDJPY: Still Trapped Within Its Declining Channel

USDJPY: The pair remains trapped within its declining channel although a higher close was printed Monday. As long as this continues to happen, we expect USDJPY to head further lower with the 94.45 level, its Jun 01'09 low coming in as the next target with a clearance of there leaving the pair aiming at the 93.89 level, its May 22'09 low. A clean violation of that level will call for the resumption of its declines initiated at the 101.43 level, its 2009 high. Nearby resistance lies at the 97.23 level, its May 28'09 high before the 98.88 level, its Jun 05'09 high and then its May 07'09 high at 99.74. Above the latter will signal a return to its YTD high at 101.43. On the whole, the pair must turn back above the 98.88 level to reduce its current downside pressure and target higher prices.

Support Comment
94.45 Jun'01'09 high
93.89 May 22'09 low
92.75 Feb 23'09 high

Resistance Comments
97.23 May 28'09 high
98.88 Jun 05'06 high
99.73 May 07'09 high

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report