Forex Technical Update
USD/JPY 1H Chart 8:50AM EDT 8/28/2012
The 1H USD/JPY chart shows a market that has been consolidating since it fell after the FOMC meeting minutes showed more urgency to consider QE3, which slapped the USD across the board. In the previous USD/JPY update, I noted that it was holding above a rising trendline, which has held price action throughout August (seen more clearly in the 4H chart).
The US Dollar - Japanese Yen pair consolidated into a flag pattern above this rising trendline.Then the 8/28 Asian session saw a slide and breakout below this flag pattern. As we start 8/28 US trading, we observe a pullback, and a rejection - price action that confirms the breakout and exposes the bearish outlook in the short-term.
We do still need to clear the rising August trendline, which should be seen with a clear below 78.50. This opens up a pivot at 78.14, and then 77.90, which is the August low, made on August 1. Below that the 77.62 support pivot from June 1 is a key level.
USD/JPY 4H Chart 8:50AM EDT 8/28/2012
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.
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.