USD/JPY Weekly Chart 9/17/2012
The USD/JPY has been falling before last week's Fed announcement on Thursday (9/13). After Thursday, however even with a USD-negative announcement in an open-ended QE3, the USD/JPY found support at 77.00. The weekly chart shows the pair bouncing off a rising trendline. Also note that the weekly RSI remains above 40. This shows that the bullish momentum from end of 2011-beginning of 2012 rally to 84.20 is still maintained.
Looking at the daily chart, we can see that the market has broken below some support factors, but the immediate rally suggests a false breakout. If this is the case, the upside has some targets/resistance levels to watch for.
1) 76.66 resistance pivot. The break above this officially shows that the market is able to make key new highs. 2) 80.60 is the next resistance pivot. This resistance held the previous reversal attempt, so a break above is further confirmation of a bullish market. 3) Above 80.60, we look at 81.76 support/resistance pivot, but really the USD/JPY would then be exposed to: 4) 84.19, 2012-high.
USD/JPY Daily Chart 2:15PM EDT 9/17/2012
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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