By Mohammed Isah of fxtechstrategy.com
NEW YORK (
: Although the dollar-yen (USD-JPY) currency pair halted its weakness at 84.71 on Wednesday and followed through higher in early trading today, we would want to see further strength above 86.23 to convince us of a possible temporary bottom.
Unless this occurs, we will be looking for a move lower targeting the 84.80 level, the pair's 2010 low, followed by 82.00, its psychological level.
Alternatively, a breach of the 88.11 level will have to occur to annul the dollar-yen's present downside weakness and bring gains toward 89.14.
A clearance of that level will turn attention to 89.68, the pair's broken rising trend line.
All in all, the dollar-yen currency pair remains biased to the downside in the short term, with eyes on 84.80 and beyond.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.