USD/JPY Technical Analysis October 13, 2011

The USD/JPY shot straight up during the Wednesday session as traders got enthusiastic about the rallying stocks markets. The Bank of Japan is threatening intervention any time this pair falls too much, so buying has been the only real way to trade this pair, and as a result – we have been buying at the 76.25 level or so. The pair also has had a ceiling at the 77.50 area, and the session on Wednesday proved to be more of the same when it came to this. The market is still exceptionally range bound at this point, and should continue to be so. Because of this, we think the next move is down in this pair, and wouldn’t be willing to buy at this point in time.

Written by FX Empire