Forex Technical Update
USD/JPY 4H Chart 10:00AM EDT 7/30/2012
The USD/JPY appears to have completed an abc corrective rally after holding below the 78.67 pivot seen in the 4H chart. Also note that the RSI held below 60, which is in line with a persistent bearish momentum in this time-frame, especially if it follows through falling below 40. Therefore, as price gets near 78.00 and tests consolidation support levels, the USD/JPY maintains bearish momentum stance.
Below 78.00 and recent lows just below, we have this year's low from May at about 77.60. If we go below that, we should be on BoJ intervention watch, monitoring for both posture and action. There is unlikely to be action, and just talk, unless the USD/JPY starts falling rapidly toward the historic low at about 75.55.
Long term position players may be building some longs here because we did have this area provide some medium term support throughout 2011.
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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