ForexPros Daily Analysis March 23, 2011


The USDJPY market, after a period of congestion without a clear direction, has sharply toned down, breaking the historical low of 79.75 dating back to 1995 owing to the tragic situation in Japan. After the breaking of this level many automatic stop loss orders were probably triggered that caused a sharp slide in the dollar in just a few minutes, crossing the affected area of 76.57 and immediately rebounding. On 18.03 we saw a combined intervention of central banks worldwide that have allowed the dollar to a decisive rebound. Friday in the early morning the maximum level at 81.96 was reached and then retraced later during the day.

In the last two days, the cross is taking a pause for reflection, for the next few hours we will closely monitor the resistance placed at 81.38 that, if breached, could lead to a continuation of the upward trend with a target at 81.96 and possibly at 83.27, the maximum relative to the 11.03. Conversely, letís set an important support at 80.42 that, if it were to divest, it would cause a fall with a target at 79.65 and possibly at 79, which is also a significant level of support from the psychological point of view.

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Forex Trading analysis written by Marco Dall'Ava for Forexpros.

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