Nick Nasad
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USD/JPY - Small Pullback Into Support at EMA's and Short-Term Pivots

While its certainly not a pretty chart here for the USD/JPY in the 1-hour timeframe as the pair fell through an upward sloping support trendline, I think today's action is more a short-term correction than the start of a broader decline.

  • With the pair now back testing both the 55-hour and 200-houly EMA's it could be a good place for USD/JPY longs to come back in.
  • If not here, then the pivots around 104.20 and 104.10 provide some more support levels to monitor.
  • We should also keep an eye on the S&P500 for general risk sentiment, and it has pared its gains from yesterday and may be settling into a sideways range for the moment.
  • The same could be said about the USD/JPY and I would put the resistance for any range near the highs we had earlier in the week, at around 104.80.
  • A break through the supports I listed however will make things interesting and it must mean that US equities are doing poorly, in which case we could see a further retracement, but at the moment that is a less likely scenario than a small rally and then sideways action.