Yen in trouble?

The Japanese yen has had trouble getting back on its feet since topping in late July.

The market has been trending nicely lower and has recently broken below some key technical support pivots originating from previous price action. Near-term momentum will contiune to favor a bearish argument below the 9775 swing high as price currently is churning sideways, digesting last Wednesday’s big collapse.

As stated previously, price recently dropped below the June low and traded all the way down to test the 9700 pivot before bouncing. This 9700 level will likely be a pivotal technical level of support going forward and could be used as a basis for trade construction. Local support can be seen around 9737 before the 9700 level comes into play and the area from 9768 – 9781 contains several potential levels of resistance that will likely make a positive breakout difficult. Until the market can maintain a trade above the previous swing high (9775) traders should continue to favor selling, rather than buying, opportunities in the yen.



Sep. ‘14 Japanese Yen, 30-minute Bar Chart (e-Signal)

 

 

 

About the Author
Erik Tatje

Erik Tatje is currently a market strategist at RJO Futures and is the author of The Tatje Reporta daily technical correspondence. As a member of the Market Technicians Association, he has distinguished himself as a professional in the field of Technical Analysis and currently holds the Chartered Market Technician (CMT) designation. Erik can be reached atetatje@rjofutures.com or 312.373.5176. Learn more at www.rjofutures.com

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