Special Focus: USDJPY

Jun. 06, 2011 6:34 AM ET
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Contributor Since 2009

Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times,Thestreet.com and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.

 USDJPY: Under Pressure, Risk Turns To 79.57 Level.

USDJPY: Having closed lower the past week and opened the new lower in early trading today, risk of further weakness cannot be ruled out.USDJPY has been under pressure since losing upside momentum at the 85.49 level in early April’2011. This technical development leaves the 79.57 level, its May 05’2011 low being targeted where a halt is expected. However, if that level fails to hold, further weakness should develop towards its psycho level at 78.00 and ultimately the 76.18 level, its 2011 low. Its weekly and daily RSI are bearish and pointing lower supporting this view. Alternatively, a break and hold above the 82.21 level must occur for USDJPY to to halt its present weakness and resume its recovery strength started from the 79.57 level. This will bring further gains towards the 83.27 level, its April 18’2011 high with a loss of that level allowing for more gains towards the 85.49 level, its April’2011 high. 

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