USD/JPY Daily Forecast For April 12 / 2011

Daily Forecast :

After The USD/JPY broke out and closed below the 3-days low at the 84.54 level, today the pair has been trading in a ranging situation between 83.61 (Fibonacci Support 23.6%) and 84.22 (Fibonacci Resistance 14.6%) . After hitting the support 83.61 level the pair wants to test the Resistance level at 84.22, if this level can be broken today, the pair will test the next target at the past 3-days low at 84.54. However, if we look at Daily Charts of the USD/JPY, this pair has divergence between the Stochastic and the price, the stochastic studies made a Double top Formation (the green circle) event though the price is still making a new high; this situation gave us a sign that the pair will get a small retracement to the downside. So please be prepared for the breakout of the 83.61 level because if the USD/JPY can break out and close below that level, this pair will be gong down to 83.45.