USD/JPY Technical Analysis October 24, 2011

The USD/JPY pair spiked lower on Friday and even managed to peak below the 76 handle. The area has been massive support, and as such – repelled the surge eventually. However, this was a serious test of the will of the Japanese central bank, which didn’t do much it appears. (It can be said that there are rumors of them stepping in “quietly” at the 76 handle, however this is just speculation.) We still believe in the range, and think this could be a good spot for a scalp. However, the EU meeting over the weekend could produce massive fireworks in the markets at the open on Monday, so smaller positions are urged.

Written by FX Empire