USD/JPY: Trouble For Buyers
Admirals | Oct 02, 2013 07:09AM ET
Yen strengthens again, and the USD/JPY is in big trouble. Buy signal triggered in the beginning of September, when buyers managed to break from the symmetric triangle formation, had been denied. Bulls could not hold onto those high levels, and allowed the price to break all supports. Currently, the price is heading towards the lower line of the recent long-term triangle, which at the same time is a long-term uptrend line. Breaking this can bring serious trouble to the traders holding long positions.
The closest support is at 96.85, but the momentum after breaking the trendline can be so strong that this level could not be able to hold the fall. There is still a little chance that buyers will stop the fall and perform a counter attack. We will be able to talk about the buy signal again once the price manages to break the upper red line which is connecting recent lower highs; indicating a short-term bearish trend.
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