USDJPY continues to have ceiling resistance at 90.90. Look for 90.20 support today

• Posted by: gregmikefx
• February 2nd, 2010

The USDJPY just could not break through the 90.90 level overnight and the failure has led to some selling pressure. The price has now dipped below the 90.55 level which has been another key technical level over the last few weeks (see chart above) and looks next to test key support at the 90.20 area.  At that level is 100 and 200 hour moving average support (green and blue line in the chart above), trendline support off the hourly chart, and 100 day Moving average support.  When there are multiple technical levels in play, it increases the levels importance for traders looking for a low risk entry point.  The reason being, if the level gives way, the loss is limited. Conversely, if the level holds, it can often lead to a nice move back higher (in this case).

So be aware of the key level and look for buyers against  the level with stops on a breach lower should the price dip further.

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