USD/JPY Technical Analysis for July 14, 2011

USD/JPY fell again on Wednesday as the Federal Reserve Chairman suggested in front of the US Congress that further quantitative easing may be in the cards. The pair is well below the all-important 80 level, and now looks very bearish. The central banks intervened a few handles below here last time and one has to wonder how closely this is being monitored. While we agree with the trend for the moment, we are leery of testing the waters below because of the 5 or more CB’s who have recently intervened.

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