USD/JPY to test 94.00 area in July - Mizuho

Mon, Jun 29 2009, 09:39 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - The Dollar's decline against the Yen from 98.89 in early June has continued during the month to break 97.30, 96.10 and 95.60 supports in the last 3 weeks to trade close to 95.50 level. Nicole Elliott, Senior Technical Analyst at Mizuho Corporate banks, expects the USD/JPY to fall further toward 94.00 zone, breaking the June low at 94.45, reached on June the 1st.

Currently the pair is trading around 95.40/50, after trading in a small range between 95.30 and 95.60 during the Asian session.

Elliott recommends to go short at 95.45 in USD/JPY: "Comment: The potential ‘head-and-shoulders’ within which prices have been working since March is still there as prices consolidate below the lower edge of the relatively large Ichimoku ‘cloud’ and above the ‘neckline’ and 26-week moving average. Maybe this week, certainly some time in July, we favour a test of the pivotal 94.00 area (and an eventual break below here). Strategy: Sell at 95.45, adding to 96.00; stop well above 96.65. First target 95.00/94.88 then 94.00."