(87,12) The USD/YEN is starting the year with a jump above 87,00, move that we expected already in the last few days of last year. The slope of the move up, that we remember started at 79,06 and never saw a real correction beside a small consolidation phase between 84,60 and 83,80 , is getting steeper and steeper but of course could still continue toward the 90 level, now the attraction. The indicators of the daily chart are well positive and heavy overbought at levels we last saw only in 2001. We have a similar situation for the weekly chart! The indicators of the s/t charts are also well positive and overbought. The move above 86,80 confirmed a positive reversal in the hourly chart suggesting a s/t target at 87,97. The European market is showing a gap up of at least 50 pips but it will be more if we consider that most of Europe closed on the 28th of December when the dollar settled at 85,92. We still believe this move up went too high too fast but history shows that the dollar could well confirm a 90 overshooting before starting a sensible correction. For the moment we prefer therefore remaining on the sideline.
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Future Trend Research