USD/JPY Weekly Technical Report 31/12/2012 – 4/1/2013

Stability above 85.50 levels is positive and makes us expect the  extension of the upside move . Momentum indicators are showing clear overbought signals on the weekly graph which increases the risk. As the pair stabilized above the referred to level, there is a good possibility to breach 86.80 levels which may lead to more bullishness towards 88.25 levels.

The trading range for this week is among key support at 84.35  and key resistance at  88.25.

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

Support 86.00 85.55 85.25 85.00 84.70

Resistance 86.45 86.85 87.15 87.45 88.25

Recommendation Based on the charts and explanations above, our opinion is buying the pair above 86.00 targeting 86.85, 87.45 then 88.25 and stop-loss below 83.35 might be appropriate