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Message: [QUOTE="team.ikofx, post: 73866, member: 31158"] [b]USDJPY Forming A Breakout Pattern[/b] The US dollar traded lower recently against a basket of currencies, including the Euro, the British pound and the Japanese yen. The most important point here is that the USDJPY pair is forming a breakout pattern on the hourly chart, which is likely to act as a catalyst for the pair in the near term. The economic releases in the US like the initial jobless claims released recently failed to match the expectation of the market, and ignited a move lower in the US dollar. One of the other best performers against the US dollar was the British pound. There is a critical descending triangle formed on the hourly chart of the USDJPY pair, which might pave the way for more upside in the near term. Currently, the pair is testing a critical support area in the form of the 200 hourly moving average. The highlighted triangle is a contracting one and is on the verge of a breakout. There is a chance that the pair might climb higher from the current levels, and break the mentioned triangle. We need to see important bullish signs before jumping into any kind of position. However, there is an important resistance just above the triangle resistance area, as the 100 hourly moving average is siting above it. The hourly RSI is below the 50 mark, which is a bearish sign in the short term. [IMG]http://s28.postimg.org/ssx0pbk5p/USDJPY_11_27_2014.png[/IMG] On the downside, the USDJPY pair might find support around the last swing low of 117.37 level. A break lower could take it towards the 116.80 area. Overall, one might consider buying with a break above the triangle as long as the pair is trading above the 100 MA. ------------------------------------- [B][I]Posted By IKOFX Technical Team: Online Forex Broker[/I][/B] [/QUOTE]

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