TechnoMeter

USD/JPY had just forced an upside trendline break and the previous significant high – May 10’s 114.37 – was within striking distance. The Dollar got there alright, breaking in to the 114.40s on July 11, but victory was partial. It only managed to top that summit intraday, still hasn’t managed a higher daily close and has now retreated below.

That channel neatly captures all the trading action from June 14’s low to the present day, but it may also offer something of a false positive. After all, the lower bound consists of precisely one intraday low, only about 48 hours old at the time of writing. The amount of reassurance this chart offers bulls must surely be limited.

The trendline below on the other hand passes through three intraday closing levels and two intraday lows. From that point of view, it looks more significant and, as you can see, USD/JPY broke below it this week.

The pair is currently very close to support around 113.11. That was July 6’s close and a region around which which had coalesced around for the four previous days. There would also appear to be support around the 111.96 mark.

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