Tue, 12 Oct 2010 14:56:00 +0200

Forex: USD/JPY showing signs of basing at 87.30 area - MIG Bank

FXstreet.com (Barcelona) - Dollar decline from post intervention high at 85.95 extended on Friday below 82.00, and the pair hit a fresh 25-year low at 82.35, to consolidate afterwards at in a range around 82.00, showing early signals of basing, according to Howard Friend, technical analyst at MIG Bank.

After three consecutive weeks on decline, the pair is starting to show signs of basing above 81.35, says Friend: "USD/JPY is showing early signs of basing in the 81.37 area as the 85.94 bear leg runs out of steam after three consecutive down-weeks."

The pair is likely to remain sideways fro a while, according to Friend, with 82.88/83.98 capping the upside: "While we could see some side/up action to unwind the move the break below the 82.88 previous swing low should keep pressure on the downside, and I look for 82.88/83.98 to cap prior to breakdown towards the all time low at 79.75 posted in 1995 over coming weeks."

Technical Analysis (2010-10-12 12:45 GMT)
USD/JPY 81.86/81.87 - O: 82.915 H: 82.94 L: 82.855 C: 82.915
Trend	R3: 82.3271
	R2: 82.1223
	R1: 81.9175
	S1: 81.4582
	S2: 81.6628
	S3: 81.8675