Forex Technical Update

Previous: USD/JPY Rallied Sharply Above 79.00 and a Declining Trendline (8/16)

USD/JPY 4H Chart 8:20AM EDT 8/23/2012
"USD/JPY

The USD/JPY fell sharply after the FOMC meeting minutes showed some more urgency toward QE consideration. In fact the USD fell across the board. The 4H USD/JPY chart shows how the pair falling from about 79.20 to 79.35 before holding at a rising trendline through the 8/23 Asian-European session.

The US session starts with a market slightly oversold with the RSI at 30 in the 4H chart. If the market fails to push above78.78 resistance pivot and the 79.00 handle the USD/JPY is still very clearly bearish, with focus toward the 78.00 handle if it can close below 78.50.

Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider ofForex News, Analysis, Education, Videos, Charts, and other trading resources.

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