USD/JPY Technical Analysis August 24, 2011

The USD/JPY pair fell on Tuesday, but managed to bounce slightly the closer it got to 76. The pair is being artificially supported by the jawboning of the Bank of Japan warning against “excessive speculation in the Yen.” This will hold the downtrend up a bit in the mean time, and makes this a least favorite pair for us to trade at the moment. If we can break the top of the Monday doji – we might be tempted to buy with a small position. Otherwise, we find this pair is best left alone as the trend is down, but a central bank stands just below.

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