WILL THE YEN HOLD THE CRUCIAL 90 LEVEL?
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USD/JPY Open 90.84 High 91.62 Low 90.51
On Thursday Dollar/Yen dropped in the morning as expected, making a higher low at 90.51, where bearish momentum was limited and the currency pair rose sharply to 91.62. The 90 level appears to be a key support level. In upward direction 91.6 is a strong resistance at this point. The longer the USD/JPY remains below this level, our preferable scenario would be downwards. Signals are also testing the upper level of the trend line at the nearest resistance shown bellow, but bearish impulse is stronger. Upward break of the resistance may cause further bullish momentum with objectives towards 92.15.
According to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, Dollar recovery will be capped below 91.80: "With some support found at 90.20 and positive RSI divergence there is a chance that we see a pop up to the upper downtrend and resistance at 91.80 where one would expect to see short sellers coming back for more."
Rosentreich advices to watch RSI on the 4-hour chart for bearish signals: "Keep a close eye on the 4 hourly RSI to see if it breaks its uptrend over the next 24 hours as this can give an early indication to whether we see a break of 90.20 or not."
Technical resistance levels: 91.6 92.20 93.10
Technical support levels: 90.15
Trend: Downward
I will look to Sell at 91.6 SL 91.9 TP 91.3
