USD/JPY short term analysis

Is EURUSD starting to discount a rate cut?
April 23, 2013
Θα έχει συνέχεια η άνοδος στο ΧΑ;
April 25, 2013

USD/JPY has been trying for some time now to break above the 100 level but with no luck. The first time it reached near 100, it pulled back below 96. The second time was yesterday as prices from 99.80 pulled back down towards 98.40.

USDJPY4H

As seen by the chart posted above, prices have found it difficult to break the 100 level resistance. Both times we witnessed a rejection and a pull back. This is very helpful as this behaviour gives importance to that price level. Therefore a break out of that resistance will have more credibility  than usual. As long as prices trade below 100, it is very dangerous to be bullish as a third rejection could push prices below 98.40.

USDJPY4H2

Trend remains up as prices keep on trading within the longer term upward channel. If the double top is broken upwards, prices are expected to go near the upper channel boundaries at 102 level. Support is found at the 99 level that if broken we could see a decline that will probably push prices towards 98.40. If that low is also broken, then I would expect a push towards the lower channel boundaries near 97.

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Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.