Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com.
USD-JPY: We continue to see risk to the downside following the pair's selloff through the 89.69 level, its Feb. 16, 2010 low, on Thursday.
Risk of further downside is now seen toward the 88.54 level, its Feb. 4, 2010 low, with a decisive break below there targeting the 88.30 level, its Dec. 14, 2009 low, and then the 87.35 level, its Dec. 9, 2009 low.
Its daily RSI is bearish and pointing lower, supporting this view. However, to reverse its current downside threats, a close back above the 92.13 level, its Feb. 19, 2010 low, must be established. That will pave the way for further upside toward its Jan. 11, 2010 high at 92.65 and then the 93.74 level, its 2010 high. A loss there would target its Aug. 2, 2009 high at 97.77.
We maintain our downside bias while the pair continues to hold within its long-term falling channel. On the whole, having lost momentum at the 92.13 level and continuing to face downside pressure, further threats remain toward the 88.54/30 levels.
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.