USD/JPY: technical analysis – July 31, 2012

The USD/JPY pair may be on its way down to retouch the 77.70 lows. This could be the final 5th Elliot wave of a 5-wave move which started in June. There was a false break back into the descending channel a few days ago but the move proved to be a false break and has petered out. The pair is now trading at the level of the lower channel line again and it could go in either direction. A break below 78.00 would be confirmation of a probable move down to the old lows.

Written by Forex4you