Forex4you Technical Analysis 12 April 2012

USD/JPY: Technical Analysis

The move down in the USD/JPY reached support at Wednesday's lows and then bounced. Now the bounce has stalled at the lower channel line and the the 38.2% fibonacci line. Normally, given the overhead resistance and the bearish bias I would expect more downside, however, the combination of support just under at 80.80 – from both the weekly and the monthly pivots stand in the way of a deeper sell-off. If the move higher continues and breaks back into the channel then 82.00 is targeted. Overall, however, my preference leans slightly to a continuation lower down to the 50% fibonacci at 80.05.

Analysis by: Joaquin Monfort
Forex4you analyst

Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.