By Yan Petters – The USD/JPY is trading within a range for several months now. The pair has failed to breach through the 95.00 level about 2 weeks ago, and ever since is dropping constantly. At the moment, the pair seems on its way towards the 88.00 level.
• The chart below is the USD/JPY 1-day chat by ForexYard.
• The technical indicators used are the Bollinger Bands, Slow Stochastic, MACD and the Relative Strength Index.
• It can be noted that the pair is still trading below the lower Bollinger Bands, which indicates that the bearish momentum is still on.
• The Slow Stochastic also looks to reverse its course and to drop once again.
• The RSI has dropped sharply lately, and is about to enter the Over-Sold section. This also suggests that the pair is likely to drop further.
• The next support level of the USD/JPY pair is placed at the price of 88.00. If the pair will manage to breach through this level, it has potential to drop towards the 86.00 level.
• If the pair will fail to breach through the 88.00 level, it might bounce back up, and reach the 91.00 level.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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