US dollar vs Japanese yen stalls bullish correction around key 80.50 resistance

<p>USD/JPY (daily chart) as of November 6, 2012, has tentatively turned to the downside after bumping up against key resistance around the 80.50 level late […]</p>

USD/JPY (daily chart) as of November 6, 2012, has tentatively turned to the downside after bumping up against key resistance around the 80.50 level late last week. This respect of the 80.50 level, which is one of the more important support/resistance levels for USD/JPY, established a new four-month high for the pair and coincided with the 50% Fibonacci retracement of the last major bearish run from the March 84.00 area high to the September 77.00 area low. If the price is able to stay significantly below the key 80.50 level and 50% retracement, any continued move to the downside off the current bearish turn could move towards an end to the bullish correction that has been in place since mid-September, and a potential move towards a retest of the important 78.00 level. In the event of a breakout above 80.50 on an extension of the current bullish correction, further potential resistance to the upside resides around the 82.00 price region.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.