USD/JPY - Weekly Forex Analysis For March 30 - April 3, 2009

USD/JPY (a daily chart of which is shown) recovered this past week from most of the drop that it experienced during the prior week.

The key resistance level to target on this recovery was 99.65, a re-test or break of which would have had significant bullish ramifications. Instead, price fell short, double-testing 98.85 towards the end of this past week before failing and retreating. This currency pair, however, can still be considered to be within the normal bounds of a new uptrend.

Currently, there is at least a 300-pip cushion to the downside (to around 94.50) before the uptrend can confidently be considered invalidated. To the upside, any breakout above the double-tested 98.85 should work its way towards the key 100.00 mark, passing the recent 99.65 high along the way. And any break above 100.00 could target further major resistance around the 102.50 price region.

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