Forex Technical Update

Previous: USD/JPY Attacking 80 Handle Again with Bullish Momentum (11/1)

USD/JPY 4H Chart 8:45AM 11/2/2012

USD/JPY 11/2/2012 4H chart

Positive NFP: The US Non-Farm Payroll data came in better than expected. According to Forexfactory, the consensus was 123K after a 142K month in September. The September data was revised up to 148K, and the October data came in at 171K. This is positive for the USD, especially against rival safe-haven currencies like the JPY and CHF.

Bullish continuation: The 4H chart shows a market that is taking off after a small ABC correction. Note that the RSI held above 40 for the most part after USD/JPY found support at 79.26. With the help of the NFP strengthening the greenback, the pair is taking out the 80.37 resistance pivot and pushed the RSI above 70 again, reflecting bullish continuation dynamic.

6-month high: The daily chart shows the market pushing above the May high that was around 80.60. If the market can hold above 80.35, the focus is toward the next resistance pivot at 81.76. This is the origin of the declining trendline we see in the daily chart that was broken back in October.

USD/JPY Daily Chart 8:53AM 11/2/2012

USD/JPY 11/2/2012 daily chart

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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