USD/JPY Trade Strategy Snapshot 1/15

\ 11:22 AM EDT \ January 15th, 2013
Forex Technical Update

EUR/GBP 1H chart 9:20AM EST 1/15/2013

usdjpy11152013

Bearish continuation: Just as I caught this set up, the market broke it down. After overnight decline, USD/JPY consolidated during 1/15 US session. Forming what could be an inverted head and shoulders IF the latest 15-min candle held above 88.60 and returned to 88.94 area. Above 89.00, a bullish continuation could be considered.

However, 88.60 broken down, and now the focus is on 88.30, and possibly further bearish outlook in the short-term as the 15-min RSI holds below 60, showing maintenance of the bearish momentum from the overnight swing.

As warned in the previous observation of tops in JPY-crosses, be careful because we have not had any significant bearish correction, and markets might still be biased to buy on dips. I expect a choppy market. But if bears win out, and USD/JPY bulls get flushed out, along with risk-aversion, then a fall in JPY-crosses can be fast.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for 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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