December 18, 2006 - December 22, 2006

View on USD/JPY: dollar is going to be restored

GFSignals team ( http://www.gfsignals.com ) provides a week forecast for USD/JPY

Last week USD/JPY couple continued to grow. Weekly increase amounted to almost 200 pips and arrived at 118.30. A technical picture is uncertain.
"Head-and-shoulders" figure working-off is likely to be unrealized, since couple course got over the "neck line" as a very important resistance.

Script 1 (50%): Side exchange fluctuations within the 117.40 - 118.60 area.
118.60 level achievement may lead to rollback and to side exchange fluctuations within the 117.40 - 118.60 area generating. These side exchange fluctuations levels overcoming will lead to the next two scripts development.

Script 2 (20%): Downward trend under 117.00.
In case of a downward trend less than 117.40 "Head-and-shoulders" figure working-off script which is viewed in our previous reviews will reestablish. Course decline will continue to the 115.00-116.00 area.

Script 3 (30%): Upward trend up to 119.70/90.
Couple has arrived to 118.60 as the upper level of the side range expected. In case of overcoming it the couple will get over 119.00 and reach 119.90.

Resistance
118.60 November resistance
119.70/90 October resistance region - top points of 2006 year
121.40 2005 year resistance - the longstanding maximum

Support
117.40 Support to be expected (broken resistance)
116.60 The resistance level broken upward - support to be expected
115.40 Medium December support
114.40 December monthly minimum