Forex Technical Update
The USD/JPY has been scraping at fresh record lows below the 76.00 handle. The daily chart shows a market extending a break to the downside form a range-bound market that started in August through mid-October. Note the RSI returning below 40 after failing to break above 60, reflecting maintenance of the bearish momentum it had already established.
A conservative range breakout projection targets the 75.00 psychological support and a conventional one using width of the entire range projected into the direction of the breakout targets 74.75. If the market was not scared of the prospect of a Japanese Ministry of Finance or Bank of Japan intervention at 76, it may not have that fear until the 75.00 handle.
As the market has established resistance at 76.50 after a pullback earlier this week, this will be an important pivot to break above for any consideration of basing from these new lows.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.