USD/JPY Momentum and Price Fail at Key Levels
Chart Prepared by Jamie Saettele, CMT
-The last update noted that “the USD/JPY decline since June 2015 has been far from smooth but weakness since the NIRP failure at the end of January is contained within a channel. Since July, a head and shoulders continuation pattern has developed which could send USD/JPY to 92.50. This pattern is valid while price is below 102.66. Strength above 102.66 would trigger a failed pattern and bullish signal.” The bullish signal triggered but the rally failed at trendline resistance. Also, daily RSI failed at the same area it’s failed at all year, which is disconcerting for the bull camp. The outlook is unclear.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.