Forex technical analysis: USDJPY looks to test post Brexit day low

5 July 2016, 19:26
Sherif Hasan

Not to be confused with the BREXIT day low

The USDJPY traded at a low of 101.38 on June 27th. That was the Monday after the BREXIT result on June 24th. That was the low from last week as well. The 50% of the move up from the low comes in at 101.20 area (I am using a low on Brexit day of 99.02 which was Bloomberg's low).

Looking at the 5-minute chart, the pair has been stepping down in trading today. The last correction took the price pretty close to the 50% line before falling back lower. 

The "Correction Zone" defined by the 38.2-50% of the last leg lower comes in at 101.62 to 101.674.  That represents the absolute minimum corrective hurdle that the buyers would have to conquer to take back the minimum control from the sellers. 

The lower channel trend line on the 5 minute charts comes in at 101.33 currently and moving lower as time ticks by. If the price starts to accelerate lower, that line might be eyed by traders as at least a speed bump in the road.   We are though seeing some support buyers against the last week lows for now. 

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