Since the middle of December 2008, the currency cross of USDJPY at 90.00 had been an important level of reference for support and resistance. This is partly due to the sideway movement of the cross as it is preparing for a possibility of double bottom.
Refer to 15 min chart below. From the left of the chart, on 29 January, 7:30 GMT USDJPY breached the 90.00, went to as high as 90.35. On the same day at 10:15 GMT, it pierced the 90 level from above to reach bottom at 89.62 and than had a reversal upward to barely breached the 90.00 level at 12:45 GMT. An evening star was formed and the cross inched slowly downward for 5 hours.
By the closed of the 29 January, the cross managed to touch the 90 level with a doji and expected shooting star but today open there was an opening bozu candle and closed above the daily pivot point. Two candles later or 30 minutes, a reversal signal of evening star was formed just beneath the 23.6% fibo retracement. The cross cut through the 90 level, the daily pivot point and the uptrend line with possible target at 38.2% retracement at 89.85 or 50% retracement at 89.55.
