USDJPY Forecast

The USDJPY had a significant bearish momentum on Friday, bottomed at 81.65 and hit 81.20 earlier today in Asian session. The earthquake and Tsunami in Japan triggered broad Yen strength (my condolences to the Japanese). However, as you can see on my daily chart below, price failed to make a clear break below the triangle formation so far. I don’t think that now is the best time to trade. Beside unclear/consolidation technical bias, usually market reaction to a natural disaster can be very tricky. The bearish momentum might be short lived and market sentiment can change quickly to the opposite direction, testing the upper line of the triangle. On the downside, a clear break below the triangle and 81.20 would trigger further bearish pressure targeting 80.90 – 80.30 support area. Immediate resistance at 82.60. A clear break above that area would change the intraday bias to bullish testing 83.28 and the upper line of the triangle.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.