Currency
by ForexNewsNow Team on October 27, 2010

USD/JPY forex technical analysis round-up: Oct. 27

Intraday analysis - BOJ chief ShirakawaNEW YORK (Forex News Now) – As of around 14:50 P.M. GMT on Wednesday, the yen paring losses against the U.S. dollar, after hitting a 2-week low in European morning currency market trading.

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

Forexcycle says USD/JPY is likely to find key resistance at 81.91, and as long as this level holds, the price action in the trading range between 80.41 and 81.91 is treated as consolidation of downtrend from 85.92 – with one more fall to 80.00 still possible.

But the realtime forex news site adds, “A break above 81.91 key resistance will indicate that the downtrend from 95.92 has completed at 80.41 already, then the following upward move could bring price to 83.00-84.00 area.”

FXstreet, for its part, quotes an analyst from Windsor Brokers as saying that the next key levels lie at 82.34/50, the 12 Oct. high/38.2% of 85.92/80.40 decline.

In intraday analysis, the analyst goes on to say that, “Corrective pullback should be contained by 81.30, to maintain immediate bulls.

Meanwhile, in a report aimed at technical analysis trading, Action Forex points out that intraday bias in USD/JPY has remained cautiously on the upside, for the moment.

“A short term bottom should be formed at 80.40 on bullish convergence condition in 4 hours MACD,” the site adds. “Further rise should be seen towards 82.86 support turned resistance next.”

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