The USD/JPY is drifting lower ahead of Thursday’s Brexit vote but major support is just below. Charts and explanation are detailed in this post.
USD/JPY monthly: the monthly chart shows horizontal support near the 101.50 level. Note how this region ties in with the 50% fib of the 2010-2015 swing high move near the 100 level and also helps to form up a bullish-reversal ‘Inverse H&S’ pattern:
This longer time frame chart shows the impact of this 100 psychological and whole-number level:
USD/JPY weekly: and break and hold below this 50% fib and 100/101.50 region would support a move down to the next 61.8% fib level near 95.
USD/JPY daily: this is pretty much a story of lower Highs and lower Lows with no reversal in sight just yet:
USD/JPY 4hr: price action is just 200 pips above this first layer of support at 101.5. The monthly chart’s 50% fib is just below this and near the 100 level so watch for any reaction around these two levels.
Summary: Major technical support for the USD/JPY is to be found near the 100 / 101.50 region so watch for any reaction around this level. A break and hold below this support region would suggest a move down to test the 61.8% fib near 95.
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