USD/JPY At 5 Week Support Level Again

April 28, 2013 in Chart Alert

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For past 5 months the price action of USD/JPY has been mainly above 5-Week EMA level and this level has been coming as support continuously except 3 times. The point to be noted that all these breaks took place recently during past 9 weeks. It is natural also as the psychological pressure of first the 95.00 level and then 100.00 level came into picture. The current price is again at that support level.

USD/JPY and 5-Week EMA support

 

USD/JPY weekly chart - 5 week EMA support

The two efforts to test 100.00 level has created a double top formation on the daily chart. The formation will complete if a break of neckline support takes place. The theoretical neck line is at 95.80 but due to the brief break below 97.42 we can consider 97.42 as neck line. The various supports are indicated in the chart below.

USD/JPY daily chart and various supports

USD/JPY daily chart - double top formation

You may also like to check the weekly forecast for USD/JPY.

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