Forex Technical Update
After failing to break above 78.25, USD/JPY invalidated the bullish outlook and remains pressured heading into 2012. The 4H chart shows re-establishment of bearish momentum and price falling further from the 200 4H simple moving average as well as a broken rising support. There is an immediate support pivot near 77.10, the December low. The consolidation low, established in November is near 76.56.
The daily chart shows that below 76.56, we have record lows below 76.00, but I suspect support will be found near 76.00. Even though the market has not shown signs of reversal, and a true bottom has not been established, we have started seen the market flatten out a bit. We can look at this market as a range between 75.50 to 79.40 area (though a break above 80.00 would probably be needed to bring about a bullish market). IF the market gets to 76.00, be ready for a bounce within the context of a sideways market.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.