USD/JPY Candlesticks and Ichimoku Analysis

	Last Candlesticks pattern	Time of formation	Trend bias
Weekly	Doji	5 Apr 2009	Sideways
Daily	N/A	N/A	Down

Although the greenback dropped to as low as 88.14 last week, the subsequent rebound from there has retained our view that the fall from 93.78 is still a correction of early rise from 84.82 and consolidation with mild upside bias remains for gain towards 92.16, however, a weekly close above this resistance is needed to signal aforesaid rise has resumed and bring retest of 93.78 later. Looking ahead, once this level is penetrated, this would indicate a stronger retracement of medium term downtrend is under way and would take dollar higher towards the Ichimoku cloud bottom (now at 95.68) which is likely to hold on first attempt.

On the downside, whilst pullback to 89.00 cannot be ruled out, as long as said support at 88.14 holds, prospect of such a rally remains. Break of 88.14 this time would risk weakness towards 87.36. However, as the fall from 93.78 is still viewed as a strong correction of early rise from 84.82, reckon downside would be limited to 86.00 and bring another rebound later.

Based on ActionForex.com Technical Outlook