26 January 2012 at 8:00 GMT
Our call yesterday for USDJPY was for higher levels and USDJPY traded to within two pips of our second target 78.32 (the ascending triangle target). This level was strongly rejected with virtually all the days’ initial gains being overturned.
The four-hour chart also shows a large reversal candle formation from yesterday’s high highlighting the strength of the rejection.
The support levels are 77.32, the January 20 high (previous resistance, now support), then towards 77.00, and possibly towards 76.80, the daily ascending trend line.
Based on this today’s call for USDJPY is Bearish below 78.00.
The risk to this call however would be with buying through a stop at 78.00, yesterday’s intraday high.
