FX.co ★ USD/JPY Weekly Forecast for March 14th - 18th/2011

WEEKLY OUTLOOK :

The USD/JPY is still trading between the triangle pattern; the 10 periode Moving Avarage slope is almost flat and in the middle of the candle body. Moreover, the closing price on weekly charts closed in the "inner" body of January 2nd/2011 bar; as we know, that bar is a "measuring bar" for the USD/JPY since early 2011. It means the USD/JPY has been trading in a sideways model called Ledge/Cluster situation (4 to 10 bars). However, if we look at the Stochastic studies, this indicator shows this pair is in a bearish situation on weekly charts, so we expect that next week the Support Level 81.50 will be tested, and if this level is broken, the mark 81.00 will be the next support tested by the pair. On the other hand, if this pair comes back to the north, it will test the next resistance at 82.00 as the first target and 82.25 as the second target.