Forex Technical Update
The USD/JPY has been recently looking like a market that wants to finally build a bottom. The 4H chart shows a market that is trading above the 200 period simple moving average and is attempting to continue to the upside after breaking above a consolidation pattern. The RSI reading breaking back above 60, and preferably 70 can help confirm the momentum to this rally attempt. First the market has the 78.25 high to deal with, and then the swing projection targtes 78.80.
The daily chart shows a market that has been pretty much sideways since July as it attempts to build a bottom. However if the market does develop this swing toward 78.80, it would be approaching important resistance area. There is the 200 day SMA near 79.00. Then there is an important resistance pivot in the 79.35-79.40 area.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.