Chart of the day: USD/JPY

Blake Morrow Forex Analytix

The USD/JPY has bounced from very clear support, where the pair was developing a head and shoulder pattern. Clearly, we had a bounce from the neckline which leads us to the next question: Where to now?

We could argue that the channel (blue) trend line held which just reinforces the strength of the 140.00 level support. However, after a 300+ pip bounce this week already, we are closing in on key resistance. This is located at the underside of the broken triangle trend line at 144.50 (red) which could be tested in the next 24hrs.

Sometimes, just using simple pattern recognition and drawing some trend lines can give traders a much cleaner picture and expectations.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

EUR/USD makes a U-turn, focus on 1.1900

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GBP/USD sticks to the bullish tone near 1.3660

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Gold holds on to higher ground ahead of the next catalyst

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