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Monday, October 15, 2012

$USDJPY

$USDJPY closed lower on Monday but the low-range close sets the stage for a steady to lower opening when Tuesday's night session begins trading. 

Stochastics and the RSI are bearish signaling that sideways to lower prices are possible. Closes below the reaction low .12631 would confirm that a short-term top has been posted. If December renews the rally off August's low, the reaction high crossing at .12922 is the next upside target.

First resistance is the reaction high crossing at .12922. 
Second resistance is September's high crossing at .12977.  

First support is the reaction low crossing at .12631. 
Second support is August's low crossing at .12565.