USD/JPY (daily chart) as of November 6, 2012 has tentatively turned to the downside after bumping up against key resistance around the 80.50 level late last week. This respect of the 80.50 level, which is one of the more important support/resistance levels for USD/JPY, established a new 4-month high for the pair and coincided with the 50% Fibonacci retracement of the last major bearish run from the March 84.00 area high to the September 77.00 area low. If price is able to stay significantly below the key 80.50 level and 50% retracement, any continued move to the downside off the current bearish turn could move towards an end to the bullish correction that has been in place since mid-September, and a potential move towards a retest of the important 78.00 level. In the event of a breakout above 80.50 on an extension of the current bullish correction, further potential resistance to the upside resides around the 82.00 price region.


James Chen, CMT
Chief Technical Strategist
FX Solutions

Forex trading involves a substantial risk of loss and is not suitable for all investors.  FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice.  Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein.  FXS does not endorse nor is it responsible for any third-party posts related to this material.

For more forex information, go to www.fxsol.com