FX.co ★ USD/JPY technical overview for May 11, 2011

The Japanese yen has been generally declining since early April. At the moment we observe the beginning of a slight corrective rebound up to the Fibonacci level 23.6. The Alligator is still giving a very explicit sell signal. As for oscillators, we can see correction signals from the Stochastic oscillator. We should expect a reverse back to the major movement today or tomorrow as the Stochastic oscillator can reach the overbought zone very soon.

At the moment it is reasonable to define the point where the correction movement is to end and sell. There are currently no buying opportunities.