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USD/JPY Trying to Break Triangle Support after Poor US Data

Deeper than expected GDP revision and poor Durable Goods Orders gave way to broad USD-weakness.


(usdjpy 6/25)

The USD/JPY also got hit up. The 4H chart shows the pair in a triangle consolidation since the end of May. Today's price action is cracking that triangle support, though traders in the US session are keeping the pair within the triangle. The breakout is still valid, but a break above 102 could reflect a false break and therefore suggest a strength in the opposite direction. We will still have to break above 102.20 to open up a bullish outlook.

If the pair holds below 102 on a subsequent pullback, the downside remains open toward the 2014-low at 100.76.