By Rita Ruvinski – At the beginning of the week, USD/JPY still struggled with 83.16, but after the pair fell below the previous 15 year low of 82.82. Dollar/Yen continued the fall and went as low as 81.72 before closing at 81.90.
However as seen is the USD/JPY chart below the pair maybe heading for a bullish reversal. Technical indicators show there are good chances the instrument will increase further with a potential price of $82.75 in sight.
The chart below is the USD/JPY daily chart: The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and Bollinger Bands.
Point 1: The Bollinger Bands have already begun to widen, indicating that a price shift is likely to take place. As we can see, the price ticks are currently right along the lower band, telling us that the price shift is likely to be upward.
Point 2: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in a downward direction.
• Point 3: The RSI signals that the price of this pair currently floats in the over-sold territory, indicating an upward pressure.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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