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Forex pairs in this Article » USD/JPY, USD/JPY
Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

FOREX Trading and Technical Analysis Observations

The USDJPY gapped higher last night and traded at its highest level since April 2011. As focused on in FX Technical Weekly, price has completed an impressive inverse head and shoulders pattern. A test of the broken neckline (as support) would present an opportunity to play the longer term break against 8172 (December low). That line crosses above 8310 this week. Former resistance at 8283 is potential support. Keep an eye on the 20 day average for support as well (currently at 8252).

Bottom line; expect the pullbacks currently underway in the Yen crosses to continue for several days and probably the week. Nimble short term traders may wish to trade from the short side towards 8283 USDJPY (resistance is now 8391). I'll be looking for USDJPY longs below 8283.

USDJPY - Daily

FOREX_Trading_USDJPY_Pullback_Underway_Towards_Former_Resistance_body_usdjpy.png, FOREX Trading: USD/JPY Pullback Underway Towards Former Resistance Prepared by Jamie Saettele, CMT

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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