Previous: BoJ Decision – USD/JPY Reaction (11/20)
USD/JPY Weekly Chart 11/21/2012
Bottoms: If you have been following the USD/JPY, you have seen a sharpy uptrend develop since September this year. The weekly chart shows that this rally bounced off a bottom developed in 2011. In a way, 2012 also created a bottom, and the past few weeks have seen the USD/JPY rise from this bottom as well.
Momentum: The RSI in the weekly chart pushed back above 60. When the RSI hits 70 holds above 40 and pushes back above 60 like it did, it is a reflection of bullish continuation momentum.
Targets: Before getting too ahead of ourselves. We have a couple of key resistance levels: the 2012-high at 84.19 and then the 2011 high at 85.50. While the Weekly RSI is just pushing above 60, the RSI readings in the daily down to the 1H charts hare above 70, showing overbought condition in the short-term. Perhaps a correction is due, but price action and momentum suggests more upside risk after.
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.
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