Article / 01 February 2013 at 9:22 GMT

USDJPY day of week pattern

Head of FX Strategy / Saxo Bank
Denmark

Not much science here, just an observation that the Monday-Tuesday time frame has been the one in which USDJPY has consolidated in all but one of the last four weeks - and even in the exception's case, Monday saw marginal new highs before a brutal sell-off on Tuesday/Wednesday. That means virtually the entire rally this year has been built on Wednesday through Friday price action - even from local low levels. These patterns rarely persist for long and one wonders if this one has gotten too easy. Today's US employment report tells us whether USDJPY ends the week with yet another flourish higher or whether we finally see a sharp consolidation to end the week.

Chart: USDJPY

Last four Mon-Tue candlesticks circled.

usdjpy

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