Thursday, 21 June 2012

Silver breaks one month old trend channel support, Gold close

Daily candlestick charts shown.



USD/JPY breaks upwards from recent trend channel

This morning I tweeted "USD/JPY over 79.80 would be very constructive". Perhaps "very" was getting a little carried away. In any case, this evening the pair has gone as high as 79.95, breaking upwards from the trend channel that contained market action since mid-March, as shown on the following daily candlestick chart of 2012's trading.

Zooming out to the big picture shows the USD/JPY wedging in to a bottom over a number of years - a bullish set-up with a target of over 120, where the wedge began. Today's rally takes the market back above the mid-1990s low, and is a small baby step toward building confidence in the infant up trend. There is a lot resistance overhead, to state the (very) obvious.