USD / JPY Technical Forex Analysis for Forex Traders

Finally, we broke 84.03 which was under our spotlight for several days. The drop which followed reached 83.59 so far. This break opened the door wide for a test, and most probably a break, of the 15-year low 82.87. We believe that getting there is only a matter of time. As you probably remember, the importance of 84.03 comes from the fact that it is the 61.8% Fibonacci level for the rise from the 15-year low of 82.87 to the post-intervention top 85.91, therefore, it is the “guardian” of the 15-year bottom. This makes breaking 84.03 the first step in breaking 82.87, and reaching fresh 15-year lows. But the question is will this drop be fast, and we see these levels relatively soon, let’s say before the weekend? Or will it be a slow drop that will consume many days to get there? Short term support is at 85.30, and if broken, the drop will go on, and target areas below 83, we love 82.87 & 82.40 most of them. Short term resistance is a bit far, and it is at 84.71. If broken, we will shoot up 85.91 & 86.95, very unlikely at the moment, unless we have an intervention.

Support:

• 83.50: Sep 7th low.

• 82.87: Sep 14th low, and the low for the last 15 years.

• 82.40: the trend line combining the monthly bottoms of Dec 2008, Jan & Nov 2009.

Resistance:

• 84.71: the falling trend line from May 5th top on the daily chart.

• 85.91: Sep 16th high.

• 86.95: Jul 1st low.