Weekly forecast for USD/JPY

March 19, 2007 - March 23, 2007

View on USD/JPY: shape after the shape

GFSignals team provides a week forecast for USD/JPY

+ 1924 pips - this is the trades result for the last week of our Forex traders' signals.
More details at our web-site.

The upward rebound from the 115.20 level in the beginning of March didn't lead to upper rise. Last week the pair consolidated at the 115.50-118.00 range, making a triangle fluctuations range. This formation can lead to the next course decline in the future.

Last week no one of our scripts was fulfilled exactly. Thus the pair exactly achieved the estimated by the double bottom shape target 118.50 (see the technical levels in the last review). A technical picture remains to be descending.

Script 1 (50%): Side exchange fluctuations within the three-cornered 116.10-118.40 area.
Current correction may remain in the bounds of the triangle. The break out of the limits will lead to the next two scripts.

Script 2 (30%): A downward trend to 113.00-114.00 area.
A bottom triangle line break down at 116.10 is necessary for this script. After that a potential downward target, the December, 2006 minimum area, will be achieved firstly. That will lead to a deeper decline in the future, while to the 113.00 level area, triangle workout target.

Script 3 (20%): An upward trend to 121.00.
It must not be ruled out this script, because an upside break out of the triangle may occur (the upper limit is 118.40). Thus, after such an upward trend a following downward trend to the March minimums is expected.

Resistances
118.50 - double bottom shape workout target - last week maximum (upper triangle bound is a bit below).
119.00/119.90 - the broken February support area.
121.60/122.20 - February resistance.
122.20 - January, 2007 maximum - yearly resistance.

Supports
115.70/116.10 - last week support area, bottom triangle line as well.
115.20 - March, 2007 yearly minimum.
114.40 - December, 2006 minimum.
109.00 - May, 2006 minimum.