Friday, May 11, 2012

USD / JPY Daily technical analysis:

The usd/jpy has reached a critical support area around 79.50. The pair is creating a bullish divergence on the MACD Histogram indicator, suggesting a coming up move. Just to make it clear, a divergence is when prices are going in the opposite direction of an indicator (see daily chart). On the weekly chart we can see a Doji candlestick closing above the 21 MA. Now, if the weekly session will close like this, a break of weekly high will trigger a bullish move. The target for this move will be, first 80.55 and finally 81.75. Therefore, watch for the closing of the weekly candle, and if this scenario will happen SL should be placed below 79.40.

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