Forex Technical Update

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USD/JPY 1H Chart 7:15AM EDT 6/12/2012


Technically, the 1H chart shows the USD/JPY in a triangle with declining resistance and rising support. But with such insignificant slopes, we may as well consider this market ranging roughly between 79.10 and 79.80. The RSI is beginning to be stuck between 40 and 60, which reflects consolidation momentum.

Perhaps the market is staying put ahead of the BoJ meeting during the 6/15 Asian session.

This consolidation comes after a rising channel anchoring out of a declining channel of a higher degree, seen in the 4H chart.

USD/JPY 1H Chart 7:18AM EDT 6/12/2012


If the market breaks below 79.10, it is in the direction of the trend since the USD/JPY topped off in March. There are some short-term support pivots at 76.70 and 78.50, but the 2012 lows at 77.95, 77.64 will be in sight as well.

A break to the upside confirms follow-through in the corrective breakout, extend upside toward 80.00, and then the 80.50 resistance pivot area.

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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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.