Above is the daily chart of USD/JPY. After the earthquake, Japanese Yen surged due to speculations on Japanese companies repatriating funds to help aid the citizens. The rate dropped largely.
As we can see, it broke the red medium-term up-trend line yesterday, following the great rebounce believed to be because of Japanese Government injecting cash to the economy.
There seems to be support at 61.8% fibs level (around 79.8). However, if JPY remains below the horizontal support at 80.3, it will be following bearish trend and plunge further.
Next support level is at 100%-fibs level (around 77.7).
However, RSI and MACD are extremely low now. So I expect there will be some consolidations along the support at 80.3. Then, a further slump would probably follow.
No comments:
Post a Comment