by Himanshu Jain
usd/jpy forecast- daily chart
USD/JPY broke the resistance we had mentioned that we would be watching and moved up to 78.22 as mentioned last weekend. The currency pair touched 78.28 and had a strong fall from there. Please also take a look about this resistance in the post under the subforum names “Watchouts-Observations-Alerts” underforex forum.
The recent drop came from a zone which had proved to be a very strong resistance area from November 4th to December 28th, 2011 and turns the focus downwards again or for another extended sideways move.
On the downside the break of the support at 76.55 is important to expect further downward movement. A break of that would again bring frequent supports near 76.40, 76.20 and 76.00 because of the upcoming psychological level of 75.00 ranges. Overall on the downside a strong break below 75.80 and some sustained action below 75.80 would make us expect deeper movements
On the upside, if USDJPY breaks over 77.32/77.38, which is little over the upper edge resistance of the daily Ichimoku cloud as well as represents a previous resistance then we will again go neutral for the currency pair and would expect a retest of the resent 78.28 and possibly more upward correction.
This is not for the next week but overall we stay bearish for USDJPY for the longer-term basis at least till a firm break of 85.52 does not take place and this level becomes a support level instead of resistance.
You may also check daily technical usd/jpy analysis and the weekend usdjpy forecast at ForexAbode.com.
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