Thread: Daily FX Technical Analysis: USD/JPY - Possible resumption of uptrend

Daily Technical Analysis Report - USD/JPY

Possible resumption of uptrend


Written by: www.imperialFXonline.com


Daily Trend:

Bullish

Daily Oscillators:

Mildly bullish

Resistance levels:

94.69 / 97.78 / 98.89

Support levels:

91.60 / 89.75 / 88.14

Dollar's rebound from 91.60 last week calls for an end to the correction from the 7-month high of 94.69 (April 2) and although there is a possibility that this bounce could turn out to be a strong b-wave as long as 94.69 continues to hold, the fibonacci time projection suggests otherwise and the breach of 93.72/78 has given the greenback a broader bullish outlook. The uptrend from 84.82 is an A-B-C corrective upmove with the A and B legs have been completed at 93.76 and 88.14 and above 94.69 would extend gains to 95.06 and then 97.06 (projection target), however, the eventual focus will be on the chart resistance at 97.78 (close to 50% retracement of the downtrend from 110.67 to 84.82 at 97.74), a close above this level would see a re-visit of the psychological 100.00 level.

On the downside, support at 91.60 now becomes pivotal and below this support threatens a test of 91.09 (minor wave 1 top) but a sustained break below there is needed to suggest a possible end to the three-legged A-B-C rise from the 2009 low of 84.82 at 94.69 and target a stronger decline towards 89.75 ahead of the pivotal support at 88.14.

The daily chart shows a three-legged reversal from 84.82 to 93.76 with this move to be labelled as an A-leg (a: 84.82-90.77, b: 87.36 and c: 93.76) and the B-leg fall from there continues to unfold. A more bullish outlook will emerge once dollar penetrates 97.78, with the eventual upside objective being major chart resistance and 2009 high at 101.45.

Dollar’s bearish outlook seen in the second half of 2009 would only be reinstated on a breach of 87.36 as this would indicate the 5th wave diagonal triangle from 124.15 (wave 4 triangle from 1995 low of 79.70 ended there in 2007) has resumed.

Written by: www.imperialFXonline.com

The analysis was good but did not reached its target.