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)