USD/JPY analysis (July 13, 2011)

The picture has now changed on the pair with the clear break below 80,00 and even 79,50 (may low).
We are now bearish as long as 80,00 is resistance.

USD/JPY: daily chart

The USD/JPY has printed a new fesh low at 78,40. It has been a while we didn’t see such a momentum on the pair. Is it the sign of a bearish confirmation with a next target at 77,00 ?
From a technical stand and considering the breakout, it seems logical to have a bearish bias but looking at the 4-hour chart, we see that the market has bounced significantly overnight while drawing a nice hammer figure.

As a result, we might see a pullback towards former support at 80,00. If this level holds and the downtrend resumes, the breakout would be confirmed.