- Daily: The USD/JPY has been under my radar because it is in the middle of a wide consolidation zone. The 92 area may be a central pivot in the sideways range. A break above suggests the USD/JPY will test the 95 area again.
- However this scenario is challenged by a possible negative reversal forming, although it has not formed. For it to form, the market will have to top off below 93.30. But if the RSI breaks above 60, this may become invalid.
- 4H: The 4H chart shows the scenario in the weekly technical update materialize. The market actually passed the 91.80 61.8% retracement level. The 93.50 area should provide resistance, but if the market gets there, it is already heading to 95 and resistance may be temporary.
Fan Yang Currency Analyst Commodity Trading Advisor