USD/JPY Support and Resistance Areas

04/06/2010 12:01 am EST

Focus: FOREX

With a second week above its broken channel seeing the pair cutting through its 2010 high at 93.74 and its .618 Fib retracement (101.43 -84.80 decline) at 94.53 following another strong rally the past week, USD/JPY continues to build upside risk towards its August 2009 high at 97.77.


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We may see price hesitation at that level this week, but if that fails to occur, a move higher should follow. Above the 97.77 level will clear the way for a run at the 101.43 level, its April 2009 high, or even higher.

On the downside, the 94.53 level comes in as the nearby support with a turn below it opening the door for more weakness towards the 93.74 level where we envision it should reverse roles and provide support, thus pushing the pair back up again.

Further supports if seen are located at its March 25, 2010 high at 1.9294 and the 92.13 level, its February 19, 2010 high. Overall, with upside momentum activated off the 88.12 level remaining unharmed, risk remains towards the 97.77 level and beyond. 

By Mohammed Isah of FXTechStrategy.com

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