Forex Technical Update
Previous: USD/JPY Continues to Consolidate (8/29)
USD/JPY 1H Chart 11:00AM EDT 8/31/2012
I noted on Wednesday (8/29) that the USD/JPY was still consolidating, with some upside risk toward 79.00 in the near-term and still be within a bearish scenario in the short term ie. next week. The market could not muster strength for the US Dollar over the Japanese Yen pass the 78.78 pivot in the dollar-yen pair.
It slid through the 8/30 session and broke below consolidation support trendlines during late 8/30 and early 8/31 trading, eventually falling below the consolidation low of 78.34 after the transcript to Bernanke's speech was released at 10:00AM EDT 8/31.
There is a general consensus among media outlets that Bernanke is indeed preparing for QE3. The dust has not settled yet as the market continues to shake up and down after the speech.
For the USD/JPY, the 4H chart shows the next support pivots, at about 78.15, and 77.90. Then, shown in the the daily chart, 77.60 is the next support pivot made on June before the market turned from bearish (since 84.20 high in March) to flat, with medium-term consolidation high roughly at 80.60 and low roughly at 77.60.
USD/JPY 1H Chart 11:03AM EDT 8/31/2012
USD/JPY 1H Chart 11:08AM EDT 8/31/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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