USD/JPY - 86.75.. The greenback extended decline fm Wed's high of 88.12
y'day n tumbled to as low as 86.57 in NY due partly to active cross buying of
yen, the breach of 86.82 sup confirms correction fm previous near 8-month low of
86.27 has indeed ended at 88.12 n our view is that the erratic decline fm 2010
peak at 94.99 (May) has finally resumed, below 86.27 wud yield weakness to next
daily chart obj. at 85.86, however, as the daily technical indicators are now
displaying 'bullish converging signals', reckon 85.49, being 61.8% proj. of the
intermediate fall fm 92.89 to 86.96 measured fm 89.15 wud contain weakness.
Today, the o/sold readings on the hourly oscillators suggests initial
consolidation is in store in Tokyo, however, reckon 87.10 (y'day's Asian morning
low) wud cap recovery n yield weakness twd 86.27, then later indicated target at
85.86. On the upside, in the unlikely event dlr manages to trade abv 86.27 sup n
rises abv 87.45 (European high), this wud signal the price action fm 86.27 is
unfolding into a triangle (a-leg top at 88.12 n decline to 86.57 was the b-leg
trough), then stronger retracement to 87.72/78 wud follow but 88.12 shud hold.
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