Japanese Yen Cross Pick 03.31.10
The USD/JPY broke out of its recent range during the overnight trade to reach a fresh monthly high of 93.59, and the pair looks poised to test the yearly high at 93.75 as the Japanese Yen continues to lose ground against the major currencies. However, as the daily RSI crosses into overbought territory, we may see a corrective retracement over the near-term, which should lead the exchange rate to fall back below 93.00. As a result, if we see the exchange rate break above 93.75, I will look to buy into the rally on a pull back, and will place a long entry at 92.28, the 3/24 close, and will target the yearly high at 93.75, with the stop at 91.75, the 10-Day SMA.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.