Forex Depth Analysis: USD/JPY

Daily Forex Technicals | Written by Finotec Group | Sep 05 08 08:09 GMT |

Yen strength keeps other currencies in the shade! The yen climbed to the highest in more than a year against the euro on concern that a credit- market slump will lead the world into a recession, prompting investors to sell higher-yielding assets. The dollar fell versus the yen before a U.S. government report that will probably show employment fell for an eighth month. The euro declined after Luxembourg's Finance Minister Jean-Claude Juncker said the currency is 'overvalued.' The yen also jumped to two-year highs against the Australian and New Zealand dollars as stocks and commodities slumped. The following technical analysis gives us a detailed lookout on what is expected to happen to USD/JPY. The buying point is at 107.60; based on a break of a strong Fibonacci level. Previous resistance is the take profit at 108.59 Fibonacci 23.6% is the stop loss at 106.66 The selling point is at 106.72; based on a break of standard error channel lower line. Previous support is the take profit at 105.66 Fibonacci 61.8% is the stop loss at 107.47 To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line and is pointing downwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a downtrend. The momentum oscillator is very important to understand the strength of the market and as we see on the graph it is in a bearish direction. The Stochastic oscillator crosses %D line and is pointing downwards. * The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text. Finotec Group Inc. http://www.finotec.com/ Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.