USD/JPY Weekly Technical Report 15-19/10/2012

 The continuous positive price actions above 76.4% Fibonacci level and SMA 20 could assist the pair to penetrate SMA 100 which represents the pivotal point over intraday basis while the weekly PP resides at 61.8% Fibonacci of the entire ascending wave from 76.00 to 84.15. Friday’s neutral sign on RSI 14 has turned bullish with stability above the value of 50.00 suggesting further inclines during this week but we will not join bulls unless the USD/JPY pair takes out 78.75 regions. Of note, there is a classical probability of forming a huge falling wedge pattern; let us put it under our technical microscope during the upcoming sessions.

The trading range for this week is among key support at 77.00 and key resistance now at 80.30.

The general trend over short term basis is to the    upside    targeting    87.45    as far as areas of   75.20   remain intact.

Support    78.20    77.90    77.60    77.30    77.00
Resistance    78.75    79.00    79.25    79.55    80.00
Recommendation    Based on the charts and explanations above our opinion is, buying the pair above 78.75 targeting 80.30 and stop loss below 77.60 might be appropriate.