Sumary of USD/JPY Technical Setup Dragging Along:
- Key Talking Points:USD/JPY aiming to consolidate its pullback as it breaks below 109.50Weaker US CPI clouds the Dollar as safe-haven demand lifts the YenUSD/JPY has been more resilient than I originally expected and is dragging out the consolidation of the symmetrical pattern it’s in.
- USD/JPY Daily chartThe original target was 108.50 but USD/JPY has been well supported at 109.50 throughout the last month of trading, only managing to finally break below in the trading session this morning.
- What’s interesting is that most daily candlesticks on this chart have a long tail on either side, which shows reluctance from traders to commit to a direction.
- Take Tuesday’s candlestick for example, USD/JPY went as low as 109.53 throughout the session but close around 109.74, meaning sellers have had to cover an extra 21 pips if they wanted to continue the bearish reversal in today’s session.