Forex Trade Signal – Chart of the Day Aug. 12th
USDJPY – Is this 85 bounce for real?
A lot of talk about 85 has hit the wires for the USDJPY lately. Just the mere rumors of it by the BOJ have sparked a solid bounce. The pair has touched the 85 barrier 3x in the last 3 days but the first two bounces were small. However, the last one is most interesting while another piece of evidence says a lot.
Of all the prodding the pair has done at the big figure, it has yet to close below 85.30. Not 85.00, but 85.30. It has probed below giving a low print of 84.72, but this move yesterday sparked a perfect pbar formation. Since then, the pair pulled back – failing to make a new low and has since posted a strong up close for the day. We suspect the 20ema will be touched before the weekend or at least before next probe of 85.00 happens.
From here, traders should watch how it reacts as it has rejected off of it 6x in the last two months with every rejection being followed up with a day of selling so a good opportunity for bears coming up. A close above changes this and could open up some fresh upside.
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