USD/JPY today broke the Triangle chart pattern identified by Autochartist on the 4-hour charts. Autochartist rates the Quality of this Triangle at the 4 bar level as a result of the low Initial Trend and Uniformity (both rated at the 3 bar level) and significant Clarity (7 bars). The completion of this Triangle continues the predominant downtrend that can be seen on the weekly USD/JPY charts. The top of this chart pattern (point A on the chart below) was formed when the pair reversed down form the strong resistance area lying at the intersection of the resistance level 80.60 (which previously reversed the pair strongly down in May and July of 2012) and the 50% Fibonacci Retracement of the preceding downward price impulse from March. The pair is expected to fall further toward the Forecast Price 79.59.
The daily USD/JPY chart below shows the resistance levels mentioned above:
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