USD/JPY Classical Technical Report 09.29
USD/JPY: Earlier this week, Joel Kruger, Technical Strategist, made the following observation: “This is a market that looks like it trying very hard to establish some form of a base after recently setting fresh record lows just under 76.00. Although the downtrend remains intact and has been fairly intense, longer-term studies welcome the prospects of the formation of a material base and shift in the overall structure. Price action over the past several days has been confirming, with the market very well supported in the 76.00’s and unable to extend the downtrend to fresh record lows. From here, we look for the establishment back above the 50-Day SMA to reaffirm our recovery outlook and accelerate gains towards next key resistance by 80.25 further up.” Limited price action in the USD/JPY gives little reason for our outlook to change. Looking towards the fundamentals for confirmation, it is clear that the threat of a Bank of Japan intervention has alleviated much of the downside pressure the pair, as well as other Yen-crosses, have seen in recent months.
Written by Christopher Vecchio, Currency Analyst
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