Forex Technical Update
USD/JPY 4H Chart 6:43AM EDT 6/26/2012
The counter-trend idea at 80.60 followed through and the market is trading in a support cluster around 79.30. Note in the 4H chart that this level is a previous resistance pivot as well as where June's rising trendline resides. A break below this area suggests we have completed a correction pattern in June, and following the downtrend since March, a break opens up June's low at 77.64.The 78.60 support pivot could be an important level in the short-term as well.
Failure to break below the support cluster followed by a rally above 79.75 would invalidate the bearish outlook and first open up some near-term pivots at 80.00 and then this week's high so far at 80.60. The next key resistance pivot above that is around 81.70, as shown by the daily chart below. Also note in the daily chart that the RSI reading was held off at 60. This dynamic in the indicator for momentum would be consistent a bearish market.
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.