By: Colin Jessup
The Japanese Yen continues to strengthen against almost every other currency in spite of efforts from the BOJ to slow its progress. After Bouncing from the Weekly S2 twice in the past 3 weeks, the pair climbed to a 3 week high just shy of 83.00 by 3 pips and then turned Bearish again. The last 3 days of trading have been bearish since, with what I am sure is the same target in mind...the Weekly S2 at 80.25. The question is, will it push through and trade lower this time, or will it bounce yet again? Most analysts seem to agree that the BOJ will intervene again should the Yen break below the 80.00 mark...but from a technical point of view, this pair along with the rest of the JPY crosses looks ripe to breeze right on through and possibly hit 79.00 soon. For our purposes, we will assume that there will at least be some Bullish backlash at the 80.25 level, so this might be a great place to go long and hold on! Intra-day support will be at 80.35 for the S1, and 79.85 being the S2. Above we see resistance at 81.36, 81.50 and 82.40.
Happy Trading!