USDJPY: Upside Strength Eyes The 93.60 Level

USDJPY - As further strength saw the pair breaking and closing above the 92.31 level, its Oct 27'09 high on Wednesday, threats are now seen towards its established falling channel top currently at 93.60. From the big picture perspective, the pair is trading within its broader falling channel and that channel top is expected to provide resistance if tested thus turning the pair back down. However, if that fails to occur, its Aug 24'09 high at 95.05 will be targeted. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support starts at the 92.31 level, its Oct 27'09 high followed by the 91.31 level, its Nov 04'09 high and then its Dec 04'09 high at 90.77 where we expect a reversal of roles to turn the pair higher. Further down, the 88.30 level, its Dec 14'09 low and the 87.35/10 levels come as the next supports.On the whole, with corrective strength continuing to be seen, USDJPY now eyes the 93.60 level or even higher.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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