USD/JPY Weekly Technical Report 17-21/12/2012

The pair rose and consolidated above 84.10 levels was seen due to the opening bullish gap; while Momentum Indicators offer overbought signals. We cannot confirm the extension of the upside move unless the pair breaks and holds above 84.95. Therefore, we think that the bearish correctional move remains valid but not before confirming stability below 84.10 again.

The trading range for this week is among key support at 82.25 and key resistance at 86.25 .

The general trend over short term basis is to the downside stable at levels 0.9775  targeting 0.8860 .

Support 84.10 83.65 83.35 83.00 82.65

Resistance 84.35 84.95 85.50 86.00 86.25

Recommendation Based on the charts and explanations above, our opinion is selling the pair around 84.10 targeting 83.65, 83.00 then 82.65 and stop-loss with four-hour closing above 84.95; if the stop-loss was triggered, buy the pair above 84.95 targeting 85.50, 86.00 then 86.25 and stop-loss below 84.10 might be appropriate this week