By: Colin Jessup
The Japanese Yen gained against the USA's Greenback today, and just about every other major currency across the board. The USD/JPY, EUR/JPY, GBP/JPY, CAD/JPY & CHF/JPY all showed similar chart patterns on the daily time frame with the EUR/JPY and USD/JPY charts showing the strongest bearish candles. The USD/JPY opened trading just shy of 82.93 and closed for the day at 81.62, a move of 130 pips downward and closing well below the Weekly S1 at 82.00 and almost half way to the Weekly S2 at 81.13. Price has retraced during the Asian session to the Weekly S1, now providing resistance for the pair. The most probable scenario in today's trading is that we see price retrace to around 82.30 before continuing its decent. Look for Support & Resistance at numerous levels including 82.15 (Daily Pivot) and 81.50. The outlook on this pair is definitely Bearish, but be cautious as each push lower since hitting the recent high of 84.17 has been followed by a substantial retracement the following day.
Happy Trading!