By Yan Petters – During yesterday’s trading session the USD/JPY pair gained over 200 pips, reaching a 3-month high. This came after 3 weeks of relatively peaceful trading that did not include any sharp movements. However, at the moment it seems that a mild bearish correction is likely to take place in response to yesterday’s rising trend.
• The chart below is the USD/JPY 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• The pair reached a 3-month high at the rate of 92.50 yesterday, yet it has dropped ever since.
• A bearish cross of the Slow Stochastic suggests that the bearish correction is likely to proceed.
• The MACD has reached the 0.425 level recently, also suggesting that the bullish move has been limited.
• The bearish correction has potential to reach the 91.50 level. If the pair will manage to breach through this level, its next target will be the 90.50 level.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
