Yen loosing advantage as dollar looking to bounce.
The dollar firmed against a basket of currencies but gains were contained by the risk that U.S. retail sales data due later on Tuesday may cloud expectations for a pause in the U.S. rate cut cycle.
Anthony Boyajian 
13 May 2008
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The dollar firmed against a basket of currencies but gains were contained by the risk that U.S. retail sales data due later on Tuesday may cloud expectations for a pause in the U.S. rate cut cycle.
The pair has despite the relatively impulsive session yesterday been halted by the 104.22 yen-resistence. The inability to attract any sustained selling in the area however indicates that another attempt higher is underway near term.
The following technical analysis gives us a detailed lookout on what is expected to happen to USD/JPY.
The buying point is at 103.59; based on a clear uptrend.
- Fibonacci 61.8% is the take profit at 104.45
- Fibonacci 50% is the stop loss at 103.10
The selling point is at 102.90; based on a break of a strong support.
- Previous support is the take profit at 102.60
- Fibonacci 38.2% is the stop loss at 103.49
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 break the zero level upwards. 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 bullish direction.
The momentum oscillator is very important to understand the strength of the market and as we see on the graph it breaks the equilibrium level and is in an uptrend. The Stochastic oscillator crosses %D line and continues to go higher.
* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.
By Finotec’s professional analyst,
Tony B.
dealingdesk@finotec.com
USD/JPY Hourly Chart
Finotec Analysis Team
13 May 2008
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