USD JPY Showing Signs of Weakness

The USD JPY failed to take out yesterday’s high after a better thanexpected U.S. GDP report sending out a signal that this currency pairmay not be as strong as previously thought.

Intraday Analysis

USD JPY

The USD JPY failed to take out yesterday’s high after a better than expected U.S. GDP report sending out a signal that this currency pair may not be as strong as previously thought.

The inability of the U.S. equity markets to exceed yesterday’s highs is also an indication that these indices may have hit their tops.  This could be the reason for the selling of the USD JPY.  Investors may be turning more averse to risk as the stock market weakens.

Technically, breaking back under a key 50% level at 95.31 is a sign of developing weakness.  The next likely downside target is a retracement zone at 94.94 to 94.72.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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