USDJPY Analysis – May 26, 2012

USDJPY stays below a downward trend line on daily chart, and remains in downtrend from 84.17. As long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 78.00 area. On the upside, a clear break above the trend line will suggest that a cycle bottom is being formed at 78.99, then further rise to 83.00 could be seen.

For long term analysis, USDJPY has formed a cycle top at 84.17 on weekly chart. Pullback to 77.00 area would likely be seen over the next several weeks.

usdjpy daily chart