USDJPY Technical Update – Ichimoku Analysis – WC 4th March
- The bullish breakout of the double inside day formation, as highlighted in our previous USDJPY update, has seen an extended move higher. The dollar yen pair is now trading around the 93.50 area, above the Tenkan Sen and Kijun Sen Ichimoku levels.
- The weekly timeframe USD/JPY chart below reveals the significant volatility experienced over this past week, covering 207% of the average weekly range.
- Any corrective move lower would have us monitoring the following technical levels:
- Thursday’s high around 92.83, with the converging D1 Tenkan Sen and Kijun Sen levels closely aligned.
- The previous resistance zone around 92.18.
- The 91.27 area price pivot.
- A continuation of the prevailing upside trend would have us monitoring the following technical areas of interest:
- The 94.08 area 38.2% Fibonacci retrace and nearby range resistance highs.
- The 95.00 handle psychological level. This area coincides with the 2/5/2012 weekly swing high.
- The latest COT report update from the CFTC shows large futures speculators were net short the Japanese yen 65K versus the 66K prior reading.
Nick Simpson, Forex-FX-4X.com
