Forex Technical Update
USD/JPY Daily Chart 9:30AM EDT 9/11/2012
After a brief stop at the previous support pivot, the USD/JPY is breaking below the 77.66 level ahead of the much anticipated statement from Bernanke on QE3 later today (9/13) at 2:00PM EDT, 18:00GMT. QE3 expectation is pressuring the USD and giving JPY strength across the board. The USD and JPY are rivals for safe haven flow, and since the QE3 lowers the value of the greenback, the Japanese Yen is benefiting.
However as USD/JPY gravitates toward the bottom created off the all-time low, the possibility of demand should probably be considered. But first consider that QE3 affirmation has the chance to send the USD/JPY below a rising trendline seen in the weekly chart. This exposes the 76.55, and then the 78.56 all-time low.
A position trade who believes that the all-time low will hold might start building long positions as the market nears 76.50. It might take a long time to find this bottom again, but if the market is in the longer-term taking a sideways mode instead of a bearish continuation, a conservative upside target is back to the 80-80.60 area, the central pivot area of the range the pair could be forming.
USD/JPY weekly Chart 9:35AM EDT 9/13/2012
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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