USD/JPY Starting to Break Higher… |
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as the Dow ($INDU) begins the last 20 minutes of trading for the day.
The Dow is down -20 which is psychologically neutral although technically ”negative”. The weak Dow is pushing up the U.S. Dollar Index which, in turn, is allowing to the greenback to strength versus the yen.
The triangle pattern on the 30 minute chart has been broken as prices have traded through the downtrend line resistance.
Using a Fibonacci Retracement from the last major sell-off offers some potential upside targets (resistance) for exits. The 38.2% will be the first hurdle. Additionally there is an 89.59 level that has been identified as a Forecast level by the Autochartist plug-in I am running on my MT4.
The other level to watch is actually an area of resistance that begins just below the 90.00 major psychological and “decade” level and the 50% Fibonacci at 89.80 Remember that the “80″ pip level is an minor psychological level and will be resistance as well.
By the way, the initial move higher was confirmed by the MACD-H (MACD Histogram) which is my preferred way to confirm momentum breakouts such as this triangle set up.
Filed under: Chartology
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