Forex Technical Update

Previous: USD/JPY in a Head and Shoulders Attempt in the 1H chart (10/17)

USD/JPY 1H Chart 8:20AM 10/22/2012

USD/JPY 10/22/2012 1H chart

Bullish continuation: The 1H USD/JPY chart shows a market in a persistent rally, consolidating sideways briefly a couple of times last week. It starts this week (10/22) breaking above a bit of congestion that started Thursday (10/18). The 1H SMAs are all in bullish alignment, and the RSI reflects build up of bullish momentum in the short-term. The latest swing broke above the August high and previous resistance pivot at 79.66.

If there is a correction, the 79.00 level may be key to monitor. It was resistance turned support last week and it might start to build as a key support area.

Bullish momentum: The daily chart shows the RSI tagging 70. This shows bullish momentum developing in the daily chart. Before getting ahead of the bullish outlook, the short-term bullish target is the 80.60-80.65 area. This contains the previous resistance pivot, and the 50% retracement of the 84.17-77.12 decline.

USD/JPY Day Chart 8:20 AM 10/22/2012

USD/JPY 10/22/2012 daily chart

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

Copyright FX Times All rights reserved.