USD/JPY Weekly Technical Report 14-18/1/2013

Despite overbought signals on momentum indicators, trading above 88.20 levels will be considered positive targeting areas of 91.70 levels passing by the psychological areas of 90.00. Linear Regression Indicators are positive and last week’s candle is also considered bullish after reaching 86.80 areas as shown on the graph,  supporting the possible extension of the positive bias. 

The trading range for this week is among key support at 88.20 and key resistance at 91.70.

The general trend over short term basis is to the upside targeting 91.70 as far as areas of  83.40 remain intact.

Support 89.30 88.80 88.50 88.20 87.85

Resistance 89.80 90.10 90.85 91.20 91.70

Recommendation Based on the charts and explanations above, our opinion is buying the pair above 89.30 targeting 90.10, 91.20 then 91.70 and stop-loss with four-hour closing below 88.20 might be appropriate this week