USDJPY: Buying Opportunity Ahead
Last week, USDJPY broke major resistance marked by the intersection of a falling channel set from the high in April 2009 and a downward sloping trend line in place since mid-June 2007. A near-term correction lower seems likely from here however as 4-hour charts show clear negative RSI divergence as prices push to resistance at 93.80, the 01/07 swing high. I will look for a reversal to enter long in the 92.30-40 region, although a deeper retracement to the 92.00 figure would be more attractive still.
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