USD/JPY forex technical analysis round-up: Oct. 21

ForexNewsNow | Published on October 21, 2010 at 5:30 am

Technical analysis trading  - Japan's flagNEW YORK (Forex News Now) – As of around 9:15 A.M. GMT on Thursday, the yen was strengthening against the U.S. dollar ahead, as it approached a 15-year high in European morning currency market trading.

This is what the analysts say about the heavily traded currency pair in the near-term:

FXstreet points out that the currency pair seems to be stuck in a large channel (8088-8183), while a break to the downside could be held by the weekly support line at 8075.

“The bias still favours a move lower but with the risk of intervention the trade is high risk,” the realtime forex news site adds. “We need to see a close above 8133 to change the view.”

Forexcyle, for its part, says USD/JPY should find resistance now at 81.91.

According to the site’s intraday analysis, “As long as this level holds, downtrend is expected to continue and another fall towards 79.75 (1995 low) is expected.”

On the upside, break of 82.33 will indicate that a short term bottom is formed and bring stronger rebound towards 83.15/83.97 resistance zone.

Meanwhile, in a report aimed at technical analysis trading, Action Forex says intraday bias in USD/JPY is “cautiously on the downside,” since the currency pair’s recent decline is possibly resuming for “61.8% projection of 92.87 to 82.86 from 85.92 at 79.73.”

The site adds, “On the upside, break of 82.33 will indicate that a short term bottom is formed and bring stronger rebound towards 83.15/83.97 resistance zone.”

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