Japanese Yen Back to Tight Do Nothing Range
Prepared by Jamie Saettele, CMT
There are signs that the long term USDJPY trend is reversing (from down to up). Those signs include bullish RSI divergence at the October low and a positive slope on the 13 week average. A push through the trendline that has defined the trend since the May 2010 high is required in order to inspire confidence in the upside. The USDJPY did take out the short term trendline this morning but is holding the 20 day average (daily closing basis). As long as 7656 (November low) is intact, I’ll continue to view the USDJPY in a constructive manner.
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