Quote:
Originally Posted by Terri Belkas
USDJPY has edged below short-term trendline support, and with hourly oscillators looking bearish the pair may continue to ease lower.
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That looked like a good break, but it looks like we are getting no volatility to back the move up. While I didn't expect anything from the economic side, I'm surprised we haven't had more pressure from the equities drop. On the other hand, if we get a real correction in the US (and subsequently global) benchmark indexes, we could see USDJPY take out 113.25.
Right now though, it looks like this pair is in technical no man's land. I'm seeing nothing on the medium and long-term charts. You could try for 20 points on the short-term, but there are no solid horizontal support and resistance zones and trendlines are overwhelmed by choppy price action.
Terri, you think we should be looking for a new direction in the medium term? After all this dead price action over the past two weeks, I'm thinking we might find a big continuation move on the mid-October drop; but that would likely be akin to forecasting a new down leg in global equities.
