Sentiment : 79.50 79.22
Since several days and the test of the psychological level at 80 as resistance, the pair USD/JPY is making a correction. The price got out of its bullish channel (purple linesà. However, a strong zone of support is at 79.22. This level is currently tested.Another element is going to the side of the take up of the bearish trend, a descending triangle appears in h1 and h4 and 79.22 is the support. The breakout of this level will give a sell signal. The objective will then set at 78.66.
However, in case of rebound on the support at 79.22, we will wait the breakout of 79.68 to advise long positions and expect a test of the resistance at 80.58. Analysis published by Bruno, the 07/11/2012 at 8h40 GMT+2
Update the 07/17 - The pair USD/JPY got out of its neutral zone 79.22/79.68 from the bottom, giving us yesterday a sell signal. The movement almost reached the support at 78.66. In h1, a bearish channel appears (blue lines). We expect a pursuit of the bearish movement during the next days. The breakout of 78.66 will give a new sell signal and will allow the price to reach 78.50 and 78.22 in extension. We stay bearish as far as 79.40 is resistance. This level match with the level of the h4 bearish slant (black line). In case of return above this level, we will be again neutral between 79.22 and 79.68.
Update the 07/19 - The pair USD/JPY well continued its bearish movement despite a short exit of its bearish channel in h1 (blue lines). The breakout of the support at 78.66 has been validated, giving us a new sell signal.
A pursuit of the movement is expected towards 78.22. The breakout of 0.7850 should allow the price to reach this point.
We stay bearish as far as 79.22 is resistance. In case of return above this level, we will be neutral between 79.22 and 79.50
Chart of the pair USD/JPY - Timeframe 4H
Chart of the pair USD/JPY - Timeframe 1H
USD/JPY Live Chart - Timeframe : 4h