USD-JPY: More Weakness Seen

Overall, having halted its recent upside offensive, the pair is facing corrective weakness that has it on track to fall to 93.74 or even 92.94.
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By Mohammed Isah of fxtechstrategy.com

USD-JPY

: The pair still looks vulnerable to the downside for further corrective weakness triggered from the 94.76 level, its 2010 high.

The pair will have to trade above that level to put its current downside vulnerability on hold and gain strength toward its August 2009 high at 97.77.

A decisive break below its Jan. 7 high at 93.74 will set the stage for more downside weakness towards its Mar. 25 high at 92.94 with a turn below there allowing for further declines toward the 92.13 level, its Feb. 19 high, where a breather may occur and turn the pair back up again in line with its short-term uptrend.

The daily relative strength index is bearish and trending lower, supporting this view.

Overall, having halted its recent upside offensive, the pair is facing corrective weakness that has it on track to fall to 93.74 or even 92.94.

Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces

The Professional Suite

for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.