USD/JPY Technical Analysis October 27, 2011

USD/JPY fell on Wednesday, and then bounced in the US afternoon. As a result, we have a hammer for the day – the second one in a row. There is talk of possible intervention in the pair by the Bank of Japan , and as long as that continues – it will find a floor in the 76 range. Because of this, we would like to buy this pair on dips, but only for short-term trades. The range should continue to grind between 75.50 and 78 for the foreseeable future – barring that intervention.

Written by FX Empire