June 4, 2008 19:38

Technical Analysis – USD/JPY Meeting Resistance

Posted In: Free Forex Signals
By:

6-4-08

19:39 GMT – USD/JPY is approaching resistance currently around 105.50. Technically I expect the pair to bounce off this resistance. RSI also shows the pair approaching its trendline but is nowhere near severely oversold leaving the risk of a breakout.

Trading Idea: Look for bearish candlestick around 105.5 to confirm reversal and short for targets at 105.10 and 104.75. Channel could extend all the way down to 104.30. If resistance is broken look for a challenge of 105.75.

UPDATE – 00:01 GMT 6-6-08 – Pair charged through resistance and nearly broke 107.00 before coming back down to a 106-105.5 range. No bearish candlestick confirmed trade so no trade was entered.

Result: 0 pips.

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