Forex Technical Update
USD/JPY has been sliding back toward the low right before the Japanese Yen intervention on October 31. To start the week, the USD/JPY has cracked the 77.00 pivot, along with the 61.8% retracement and the 200SMA. This support cluster can still act to give USD/JPY a very short-term boost. However the 77.45-77.55 area will be an important pivot zone. If the market respects this pivot and continues to form a lower high, we could be looking at a lower low at the 78.6% retracement level near 78.40. Then, we are looking to retest the intervention pivot at 75.56, at which point the downside becomes very limited due to prospect of further intervention.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.