The USD/JPY pair fell during the session on Wednesday, and actually managed to break below the uptrend line of the larger symmetrical triangle. Even though this is in theory a sell signal, we feel there is support just below at the 97 handle, and the fact that nonfarm payrolls on Friday leads us to believe that this could be a simple matter of over exuberant. This does suggest however that the US dollar may first in the meantime, so there could possibly be a move out of this, but we feel that with this market been so sensitive the nonfarm payroll numbers that it’s probably prudent to wait until those numbers, before making any serious decision.
Written by FX Empire