USD/JPY Engulgs Prior 7 Trading Days; 123 Remains the Pivot
Chart Prepared by Jamie Saettele, CMT
-“Range expansion objectives from the December and March ranges are 125.72 and 128.12. Be aware of a long term slope level, especially in light of today’s (6/2) outside reversal. Tops formed at this line in March and July 2013. Bigger tops formed following ‘blow-offs’ through the line.”
-“A bigger top is still possible but the break above short term resistance negates a short term bearish outlook.” USDJPY has completed a head and shoulders continuation pattern with an objective of 128.47. Whether the market makes good on this is unknown. The pattern can fail but reward/risk is asymmetric for bulls against 123. A drop below there would trigger a failed pattern…and signal in the other direction (short).
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.