Stalking USD/JPY’s Throwback

0
121
Stalking USD/JPY's Throwback

USD/JPY broke above 2015’s falling trendline this week signaling a possible shift back into its prevailing trend. Now it is in a pullback. Let’s assess the technical developments.

After the break above a falling trendline, USD/JPY failed to extend above the next barrier around 119 and thus held under the 200-, and 100-period SMAs. This does not completely invalidate the bullish breakout, and if price can hold above 117 and return above 118, the pressure will be back to 119, with the 120 level as the next key challenge for the bullish outlook.

If USD/JPY breaks below 117, the previous breakout is likely false, and pressure will be back to the 115.85-116 low on the year, as well as the 115.65 December-low.

Previous Post by Author: GBP/USD Pressured after Dovish BoE Minutes

SHARE
Previous articleGBP/USD Pressured after Dovish BoE Minutes
Next articleRobert Faiella Sentenced by the US Court for Operating an Unlicensed Money Transmitting Business
Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.