USD/JPY 1H Chart 7:00AM 10/12/2012
This has been a directionless and low volatility week for the USD/JPY. It remained above 78.00, but for the most part remained under 78.50 after falling under it on Monday (10/8). The RSI has tagged 30 and 70, showing sideways momentum in the 1H chart. We are coming to the last 10/12 US session of the week with the USD/JPY coiling in a triangle pattern as it tests the key falling trendline that goes back to April 2012.
Breakouts: The break of the triangle opens up the highs and lows of the triangle. A break above the high of the triangle near 78.60 has more significance than a break below the triangle support pivot near 78.25. The break below 78.25 is just status quo, focusing on recent support pivots at 78.00 down to 77.11, where we meet a major rising trendline going back to the 75.56 record low from Nov. 2011.
A break above 78.60 however introduces a reversal scenario, away from the bottom USD/JPY seems to have built last year. It opens up the 79.67, 80.61 and 81.76 pivots.
As you can see, the USD/JPY market is also “coiling” in the daily chart.
USD/JPY Day Chart 7:05 AM 10/12/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
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