The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- The risk remains higher on correction as USD-JPY is now seen building on its past week in early trading today. This development leaves resistance at the 83.23 level, where a clean violation will turn focus to the 84.47 level, its Dec. 15 high, followed by the 85.92 level, its Sept. 12, 2010 high. Price hesitation is expected there, but if that level fails, we should see further strength targeting its 50 ema at 87.54.
Alternatively, to invalidate its current bull threats and resume its long-term downtrend, the pair will have to return below the 76.18 level. This will call for more weakness toward the 75.00 and 74.00 levels. All in all, USD-JPY remains broadly biased to the downside in the long term, but faces upside recovery risk in the immediate term.
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.