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USD/JPY - Consolidating Near Long-Term Lows

Posted on January 26, 2009 at 13:01 in Analysis by James Chen

Price action on USD/JPY, a daily chart of which is shown, has tentatively retreated from the 13-year low that was precisely double-tested just last week. In the process, the pair has reverted back up to a short-term downtrend resistance line that extends from the 94.62 swing high reached in the beginning of the year. Price is currently still considered to be consolidating near the long-term lows, but if this downtrend resistance is broken to the upside, the 91.00 level should serve as strong resistance to the upside. A break above that should meet even stronger resistance in the mentioned 94.62 region. And any strong break above this 94.62 level could confirm a potential double-bottom reversal. To the downside, of course, is the ever-present 87.00 extreme support region, a substantial breakdown of which could presage a major downward move.

4 Responses to “USD/JPY - Consolidating Near Long-Term Lows”

on 26 Jan 2009 at 5:22 pm1Joe

Then I think I’ll stay away from USD/JPY for a while. Though I would love to buy on a down tick, if it breaks levels and moves lower through the 87.00 area I wont touch it until it reaches upwards of 90.00 again.
on 27 Jan 2009 at 1:09 pm2droys

Do think this would be happened again?Have you ever become a successful trader?As the days will pass by do you think USD/JPY will come up again on the highest stake???
on 27 Jan 2009 at 1:43 pm3James Chen

Hi Joe,

Thanks for your comments. Very interesting viewpoint on USD/JPY!

James Chen
on 27 Jan 2009 at 1:48 pm4James Chen

Hi Droys,

Thanks for your questions, but I’m not quite sure what you mean by “Do think this would be happened again?”. And I’m also not sure about “come up again on the highest stake”. At this point, USD/JPY is certainly in a consolidation mode. I’m looking for a strong break either above 91.00 or below 87.00. Thanks!

James Chen

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4 Responses to “USD/JPY - Consolidating Near Long-Term Lows”