FX Path

USD/JPY - Continued Bearishness towards Channel Bottom

Posted: 01 Oct 2009 08:28 AM PDT

Price action on USD/JPY, a daily chart of which is shown, continues in its bearishness despite having earlier in the week bounced up off a new 8-month low around 88.20 with a clear hammer candle. This hammer candle descended all the way down to the bottom border of a rough parallel downtrend channel (it is rough because there was a false break to the upside in early August), before making a bounce. For more technical analysis on this currency pair, please click here for Thursday’s (10/01/2009) Chart of the Day.

- James Chen, CTA, CMT

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