FX.co ★ USD/JPY Rupture Expectation, December 15, 2010 (Daily Strategy)

USD/JPY

The USD/JPY pair is trading within a converging price movement since the beginning of the month, with an upwards or downwards breach being, probably, only a matter of time. Technically, there exists higher likelihood for an upwards breach, since the pair has not yet completed its 38.2% minimum correction relative to its secondary downward trend.

An entry into a buy position is conditional on the breaching of the minor resistance level of 84.40, which serves an upper border for the pair's movement. Further, such a breach is expected to lead the pair towards the next major resistance level at 85.90 Japanese Yen for one dollar – our exit goal for the position.