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USD/JPY Consolidates During Bearish Onslaught

USD/JPY (4-hour chart) as of Thursday (7/14/2011) has entered into a consolidation after having broken down decisively below the key 79.50 previous support region (now resistance). The breakdown below 79.50, which was the region of the significant May low, was also a breakdown below the 161.8% Fibonacci extension of the last major bullish correction, and it also follows on the heels of a breakdown below a key parallel uptrend channel that extends back to the early June low. For more USD/JPY forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education