Forex Technical Update
USD/JPY4H Chart 5/17/2012 10:30AM EDT
USD/JPY failed to break above the May high and essentially range resistance at about 80.55. So no returning to 50% retracement at 81.78 for now, especially now that it has falling below 80.00 and even a trendline seen int he 4H chart during the 5/17 US trading session.
According to ForexLive's Adam Button,
...The yen is strengthening because they say the BOJ's next move will be some sort of Operation Twist rather than more outright bond buying. I'm not entirely sure what the BOJ would be thinking on that because the Japanese yield curve is already ultra-flat with 2s at 0.11% and 10s at 0.85%. Moreover, it wouldn't do much to curb yen strength.
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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