By: Colin Jessup
The USD/JPY pair has had 3 Bearish days in a row halting at the 76.30 S/R zone that has been supporting the pair since July 2011. Sentiment is indeed bearish & oversold, but the possibility of an intervention looming is troublesome for those wanting to short this pair. The Daily Moving Average has started to angle downwards once again after printing a slight upward trend since October 2011, and the monthly candle with one a few days until close is indicating lower prices as well. The key support to watch is 76.10 and should this level break we will probably be heading for a test of the 3 month low at 75.56. If the BOJ does not intervene, it is quite possible we will be seing a new low for this pair in the next few days. To the upside, watch for price to falter at the 76.80 level and 77.25 levels.
Happy Trading.
