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USD/JPY Awaiting Near-term Consolidation

I have been following the USD/JPY a lot this week. It is finally showing a USD-correction after failing to breach the key highs on the year around the psychological handle of 110.00. Instead we saw price fall from 109.90 down to almost 107.50 by the Thursday (10/9) session.

USD/JPY 1H chart (10/10)

Since then we have been seeing a small consolidation above 107.50 and below 108.20. A couple of things:
1) The USD/JPY is holding below this week's falling trendline.
2) It is falling back below the 50-hour SMA.

So, price action is still favoring the bearish outlook in the short-term. It will take a break above 108.20 to take away this bearish bias and neutralize the mode in the short-term. With the prevailing trend bullish, a break above 108.20 can revive a bullish trend as well, which puts pressure back to the 109.90-110.08 area.

On the other hand, a break below 107.50 exposes the 107 handle as the next support in the short-term.