USD/JPY INTRADAY CHART
USD/JPY Hourly Chart
BIAS: I suspect a down-up day, but there are too many options for upside targets
Resistance: 118.70-75 118.95-00 119.46-62 120.50-55Support: 118.15-24 117.83 117.26-42 116.94
MAIN ANALYSIS: Well, yesterday blew away the additional high above 125.85 and actually confirms the weekly outlook of a deep correction lower. After such a day as yesterday, it is going to be difficult to be precise. I suspect a potential triangle in development – or complex correction – but this does need to be confirmed. This suggests a correction lower – maybe to 116.94-117.26 – before rallying back above 119.46 and to 120.70, at least. It could even get a bit higher – noting the 121.15-25 resistance. Take care.
COUNTER ANALYSIS: While not too useful – only below yesterday’s low would extend losses, although I think this is too early because the cycle low is in early December and therefore, it suggests some periods of consolidation.
MEDIUM TERM ANALYSIS:25th August: The drop from the 125.85 high was pretty confusing and obviously fooled me. However, having seen yesterday’s low, it suggests that the 125.85 high was an intermediate daily/weekly high and this should see a period of sideways consolidation, but with risk of losses at some point…