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USD/JPY4H Chart 5/17/2012 10:30AM EDT

USD/JPY

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.

The USD/JPY is trading at about 79.75 at 10:30AM EDT. Consolidation support is at 79.41. A break below that opens up the 79.00 handle, and then key support in the 78.30-78.50 area.

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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.