USDJPY may go deeper for further consolidation

January 23, 2014 in Chart Alert

Since the first week of November 2013 i.e. for close to 3 months USD/JPY’s price-action has been well over 55-day EMA. In fact the support was coming near 22-day EMA during any consolidation.

The pair had broken the 55-day EMA support recently but an immediate recovery took place. However, the pair could not sustain the upward jump.

USD/JPY back to 55-day EMA support level

USD/JPY at 55 day EMA support

The current price is at 55-day EMA support. The fact that the pair could not sustain the recovery after the recent break of this support and also the fact that the resistance came again at the short-term resistance trend-line is making the case that some deeper consolidation may take place.

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