Forex Technical Update
USD/JPY 4H Chart 7:08AM EDT 6/8/2012
- The USD/JPY chart in the 4H time-frame is starting to put on a bullish look after breaking above a declining channel resistance.
- The RSI reading tagged 70, suggesting at least a range-bound market in the medium term if not a bullish market in development.
- It's still trading under the 200-SMA here so we don't know yet.
- If the broken channel resistance does hold as support and the market can basically hold above 79.00, there is a chance for further participation in the rally.
- The RSI in this bullish breakout continuation scenario should also hold above 40, preferably above 50, and push back above 60.
- Also, note that the breakout is anchored in a rising channel, if that channel support breaks, the broken resistance does not hold as support, the 79.00 can not hold, and the RSI dips below 40, we are more likely in the range-bound scenario than the breakout continuation.
- This range is at the moment see roughly between 79.80 and 78.
- A breakout continuation has the 80.00 pivot in sight in the short-term.
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.