USDJPY Getting It’s Red
February 10, 2013 in Chart Alert
USD/JPY has been continuously finding support at 5-week EMA and had reached the 2 years 8 months’ old resistance level as mentioned in this USD/JPY chart alert.
For past 12 weeks all weekly candles have been green. Last week was the first week after 12 weeks when we had a red candle and a wide gap in the opening price and the high of the week. We take it as an indication for some more downward consolidation.
Please note that the current 5-week EMA is at 90.98. For past 11 weeks this trend of 5-week EMA support has not been broken. But then for past 12 weeks we had not seen a red candle either. Considering this, in case this support fails and 90.00 psychological support also does not hold then the pair may end up going for a dive towards 38.2% retracement.
USD/JPY 38.2% retracement
Please also check the regularly updated USD/JPY outlook.