News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
More View more
Real Time News
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here:
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge:
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:
  • The Australian Dollar may be at risk of losses against the New Zealand Dollar after an unexpectedly high NZ inflation reading sent AUD/NZD towards challenging short-term rising trend support. Get your $AUD market update from @ddubrovskyFX here:
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here:
USD/JPY Technical Analysis: Pull-Back In Falling Channel Not Enough

USD/JPY Technical Analysis: Pull-Back In Falling Channel Not Enough

Tyler Yell, CMT, Currency Strategist

Talking Points:

Given the strong move higher in the USD and its index to close out 2016, many traders are anxiously anticipating the next big move higher. Naturally, the relative weakness of JPY has traders also looking to play any rebound higher in DXY via USD/JPY. However, looking at the technical picture and a potentially narrowing yield spread between US and JGBs, we should point out a few key hurdles that USD/JPY needs to overcome before Bulls should get excited again.

The chart below shows two bias or trend filters with Ichimoku Cloud and an Andrew’s Pitchfork Channel. When Price is below the Ichimoku cloud, the price is either correcting an uptrend or in a downtrend. Typically, we look for multiple price reactions off the cloud before we turn opinion from correction to downtrend. Through much of the last week of trading, the price of USD/JPY has traded below the cloud, which currently favors the corrective view, though a correction could still result in significant losses for a trader with a poor long entry even if the long-term uptrend remains Bullish.

We would like to see the price break above the H4 /240minute cloud before confidently saying the trend correction lower is likely over. For traders that want to associate that view with a specific price, the January 8 high of 117.53 would be a good place to start.

The second form of technical analysis added to the chart is an Andrew’s Pitchfork, which is drawn off three key pivots and has done an excellent job of framing price action. What is helpful about the Pitchfork in addition to the cloud is that they offer complementary views and a break above the Pitchfork channel would also validate trend resumption and would accompany a move of price above the cloud and 117.53 resistance.

However, if the price remains below 117.53, and fails to close above the Pitchfork channel as well as the cloud, it could be that it’s too early to presume the move higher in USD/JPY is beginning. Conversely, we could be looking at a move down toward the 23.6% Fibonacci Retracement of the Post-Election Rally highlighted in this article at 114.53.

Interested in Joining Our Analysts, Instructors, or Strategists For a Free Webinar? Register Here

H4 USD/JPY Chart: USD/JPY Breaks Below Ichimoku Cloud, Trading Within Falling Channel

USD/JPY Technical Analysis: Pull-Back In Falling Channel Not Enough

Chart Created by Tyler Yell, CMT, Courtesy of TradingView

Shorter-Term USD/JPY Technical Levels: January 11, 2017

For those interested in shorter-term levels of focus than the ones above, these levels signal important potential pivot levels over the next 48-hours.

USD/JPY Technical Analysis: Pull-Back In Falling Channel Not Enough

Contact and discuss markets with Tyler on Twitter: @ForexYell

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.