USD/JPY 104.20/50 is Possible Support but Warning Signs Surface
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-USDJPY has responded to the previously uncovered close from Oct 2008 at 105.30 (high was 105.43). In fact, an outside day reversal unfolded on 1/2. Wednesday’s rally failed after a poke above 105.00.
-Failure to hold Monday’s low (103.90) could open up the ‘spigot’ and send prices tumbling to 102.50 or 101.50. I’m tracking a possible topping pattern in the S&P 500 as well.
Trading Bias: Flat
LEVELS: 103.37 103.90 104.21/47 | 105.05 105.39 106.13
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.