Technical Analysis

USD/JPY Analysis: Breaks Support

Typography

Downside risks prevailed on Thursday, thus resulting in a 114-pip plunge in one day. The pair breached the lower boundary of a three-week channel and, consequently, edged below the weekly S2 at 109.33. The given move has formed a more steeper channel down. The downside momentum has allayed, giving room for some upside potential that may be realised in this session. The given assumption that the US Dollar may appreciate against the Yen today is supported by technical oscillators being in the oversold territory and other indicators—at historical lows. Nevertheless, down-trend is still strong. The nearest support formed by the monthly S1 and the weekly S1 at 108.81/82 could be an unbreakable limit, thus guiding the pair towards the upper boundary of the junior channel circa 109.40.

Author: Dukascopy Swiss FX GroupWebsite: http://www.dukascopy.com/
Dukascopy Swiss FX Group
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