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USD JPY Consolidating; Could be Setting Up for Rally

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 20, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
    Likes Received:
    Today’s sample of Forex Analysis from ForexHound.com

    The USD JPY is consolidating inside the retracement zone created by the 84.73 to 86.37 range. This zone is 85.55 to 85.35. If the market can form a support base then look for it to make a run at the swing top at 86.37. Not only will a breakout over this level turn the main trend to up on the daily chart, but it will also confirm last week’s weekly closing price reversal bottom.

    The Dollar/Yen is also sitting on a major downtrending Gann angle from the 94.98 top at 85.48. This angle is acting like a pivot price. Look for the market to strengthen above it and weaken below.

    Based on the current chart formation, it looks as if the key will be breaking out over and sustaining a move above 85.55. This scenario would put the market on the bullish side of both the 50% level and the downtrending Gann angle.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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