USD/JPY Technical Analysis 29 July 2010

By zifx.com at 29 July, 2010, 9:10 am

USD/JPY 87.21 – 29 July 2010

USD/JPY Open 87.45 High 88.10 Low 87.03 Close 87.47

Dollar/Yen decreased on Wednesday, losing part of the gains from the previous day, in line with the negative Interbank sentiment at nearly -5%. The currency couple depreciated from 88.10 to 87.30 yesterday, closing the day at 87.47. Today the bears pulled further down to 87.03. On the 1 hour chart the new weak upward channel is still shaping, and on the 3 hour chart quotes are testing the upper limit of the downward channel. Break above yesterday’s top and nearest resistance 88.10 would support further recovery of the Dollar. Immediate support is today’s bottom at 87.03, and consistent break bellow it could strengthen the Yen further down towards next target 86.27. Today are Japan Nationwide CPI, Tokyo-area CPI, Unemployment, Household spending, and Industrial output at 23:30 and 23:50 GMT respectively. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI indicator is negative and declining, MACD is negative and calm, while CCI has crossed down the 100 line on the 1 hour chart, giving overall bearish signals.
Technical resistance levels: 88.10 89.00 89.83
Technical support levels: 87.03 86.27 85.30

Trading range: 87.35 – 86.70
Trend: Downward
Sell at 87.21 SL 87.51 TP 86.81

Already made +13 pips profit on USD/JPY today from the following signal:
5:34 GMT+1 Sell USD/JPY at 87.23 SL 87.49 TP 86.73 exit sent 6:26 GMT+1.
Total today +107, yesterday +129, as shown in details here.