USD-JPY: Although hesitation is now seen following the pair's recovery strength through the 90.77 level, as long as that level holds as support, the outlook for further upside gains remains valid.
Upside target comes in at the 92.31 level, its Oct. 27 high initially, with a turn above there aiming at the 93.85 level where its channel top is located.
On the downside, support starts at its Dec. 4 high at 90.77, where a reversal of roles may occur. Further down, the 88.30 level, its Dec. 14 low, and the 88.00 level, its Oct. 7 low, are seen as the next support areas followed by the 87.35/10 levels. On the whole, having halted its rally from the 84.80 level and held above its key resistance at the 90.77 level, the pair looks to head further higher.
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.