USD/JPY Collapse Now Consolidating

Last updated 2/4/2010 3:02 PM EST (GMT -5) 0 Comments - Add your comment

FX360 Technical Analyst Staff

Technical Analyst, GFT

USD/JPY resistance was the technical topic of the day yesterday here at FX360 as both intraday and swing technical reports highlighted bearish Gartley pattern emergence ( here ) and completion ( here ) near 91.20. Prices took a nose dive overnight and through today's morning session finally settling at 127.2% support of the trend leading into pattern completion at point D (91.27). With non-farm on the horizon continued consolidation is somewhat expected, which is a good thing in terms of the short-term geometric patterns we look to identify. Initial near-term resistance comes in around 89.60 (38.2% of collapse) followed by 90.25 (61.8%) and 90.70 (78.6%). Ideally, we want to look for bearish pattern completion at either of these levels in order to trigger a sell as these fresh lows fuel bearish momentum.

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