Business-Insider

Updating time : 13/01/2008 23:19 GMT


USD/JPY - 108.72... Although the greenback continued to edge higher last week to 110.13 partly due to cross-trading, subsequent sharp retreat signals the recovery fm this month's low of 107.90 has ended there n decline fm 114.66 top shud resume but below said sup is needed to confirm n bring a re-test of 2007 low at 107.22 (Nov) later this week.

Looking ahead, once aforesaid key sup at 107.22 is penetrated, this wud extend the major fall fm last year's high of 124.14 to 105.41 (equality proj. of 124.14-111.60 fm 117.95) n possibly twds 104.20 (May 2005), however, as dlr's MT broad outlook remains consolidative, reckon downside shud be ltd to 103.65 n price shud hold well abv major chart sup at 101.67 (2005 low).

Only abv 110.13 res wud risk stronger retracement to 110.48 (38.2% r of 114.66-107.90), however, 111.28/30 (50% n prev. sup) shud limit upside n price shud falter below res at 112.10/20.

Today, expect decline fm 110.13 to extend to 108.25 but sup at 107.90 wud hold fm here. Only a firm breach abv 109.22 wud defer bearishness n risk 109.72 but as long as res at 110.13 holds, another fall is still envisaged later..


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