USD/JPY stalls bearish correction
James Chen June 4, 2013 9:22 PM
<p>USD/JPY (daily chart) has attempted to recover above the key 100.00 level after having hit a three-week low yesterday at 98.85. This occurs in the […]</p>
USD/JPY (daily chart) has attempted to recover above the key 100.00 level after having hit a three-week low yesterday at 98.85. This occurs in the context of a bearish correction within the strong bullish trend that has been in place for the past nine months. The bearish correction has thus far shown a 4.7% loss from the four-and-a-half-year high at 103.72 that was established just two weeks ago, down to yesterday’s 98.85 low. After the recent swift and steep run-up to that 103.72 high, the current correction was both due and expected.
Currently, after having stalled around the key 100.00 level as well as the 38.2% Fibonacci retracement of the bullish run from the early April swing low up to the late-May 103.72 high, the price has neared the bottom border of a parallel uptrend channel that has been in place since November 2012. The current bearish correction could soon be losing its downside momentum and looking towards a recovery of the strong bullish trend. This upside continuation would be supported by a breakout above the counter-trend resistance trend line extending down from the 103.72 high. In the event of this breakout, key upside objectives reside once again around 103.00 and then 105.00.
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