Daily Technical Strategist | FXTechstrategy
USDJPY: Weakens, Pressures Its Major Support.
USDJPY: With bears remaining firmly in charge, the 75.92 level is now under pressure as that level is now being tested. Note that the pair is still trapped within its established sideways range (77.85 and 75.92). USDJPY has to decisively break and hold below the 75.92 level to resume its long term downtrend towards the 74.00 level. Further down, support stands at the 73.00 level and then the 72.00 level, representing its psycho level. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, the pair will have to break and close above the 77.40/85 levels, its Aug 04’2011/falling trendline to put in a bottom and create scope for more gains towards the 80.19 level, its Aug 04’2011 high. Further out, resistance lies at the 81.47 level, its July 08’2011 high and subsequently the 82.21 level. All in all, USDJPY remains biased to the downside in the long term.
EURJPY: Short Term Bias Points Higher.
EURJPY- While the cross may be hesitating, it continues to hold on to its recovery gains started from the 106.69 level. This suggests that on ending its present price hesitation, it should turn higher and target its Mar 04’2011 high at 115.98. Above there will resume its short term uptrend started from the 105.39 level. This will bring further upside gains towards the 116.99 level, its May 14’2010 high and possibly higher. Its daily RSI is bullish and pointing higher supporting this view. Support lies at the 113.45 level, its Mar 16’2011 high followed by the 110.80 level with a violation of that level driving the cross further lower towards the 106.81/69 levels. A halt is expected there if tested. All in all, the cross is biased to the upside shorter term.
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