Yen Pairs Weekly Overview – Dec. 12 to 17, 2010

The table below shows the Weekly and Daily Supports, Resistances and Risk-to-Reward forecasts obtained with the Forex AI platform calculator, for the major currency pairs that involve the Japanese Yen against the Euro, British Pound and US Dollar. Technical analysis for this week has been based on Daily charts for USDJPY, EURJPY and GBPJPY, using 20-day Bollinger Bands with 1.5, 2 and 2.5 deviations, 34, 100 and 200-day simple moving averages, trend lines and Fibonacci retracements and extensions.

SUPPORTS AND RESISTANCES

Weekly and Daily Close = December 10, 2010

WEEKLY OVERVIEW – DAILY CHARTS

USD/JPY

The Dollar Yen price action of today has been heading down after an attempt to break the upper trend line of the symmetrical triangle and is now trading below SMA100, heading for a retest of SMA34 and 50% Fibonacci retracement level. However my views on this pair are bullish and I would expect a bounce from 82.50 (should it reach the lower trend line of the triangle) and a break to the upside, targeting September highs near the 127% Fibonacci extension of previous swing high and heading further to test the 200-day moving average level. On the downside, we have a strong support at the 61.8% retracement but if broken we might retest late October lows.

EUR/JPY

Euro-Yen has found support at 111.00 and is showing a slightly upwards trend. It is presently hovering at the SMA100, SMA34 and middle line of Bollinger Bands confluence area (111.80/112.00) where I would expect it to bounce back down to November lows with further continuation to previous September lows and 138.2% Fibonacci extension at 106.00/105.80. However, a break to the upside to attempt a retest of the 200-day moving average and previous highs is also possible, and a continuation to 118.40 as 127% extension from previous swing high if there is a clear break of 115.70/116.00 (October highs).

GBP/JPY

The Geppy is still today in a tight consolidation pattern between 132.00 and 133.00. I would favor a break to the upside targeting a test and further break of SMA200 which seems to form the neckline of an inverted Head and Shoulders pattern. First target would be the resistance at 135.00 (September highs) and secondly the previous highs of late July-early August, matching a 138.2% extension, then next level at about the 161.8% extension (139.00/139.20) to finally reach the projection of the head (700 pips approximately) around psychological level 141.00. On a downside scenario, and after a clear break of SMA100 and SMA34, the bullish trend line would have to be tested and broken as a first step, to then reach down to a retest of October lows, below 126.50.