Daily GJ Technical Analysis

At last, 132.00 is hit as per my previous post here. Patience is the key....

A self explanatory chart


Correction: the candlestick on the daily chart is a bearish shooting star; not a hanging man as mentioned on the chart above

UPDATE: 7 hours later

Japan can’t resolve the difficulty of the strong yen unilaterally as currency-market intervention by a single country has limited effect, Bank of Korea Governor Kim Choong Soo said.

“Japan, alone, cannot resolve the problem of the strong yen,” Kim said at a media seminar in Incheon, southeast of Seoul, two days ago. “Japan will need policy coordination with others, including the U.S. and China. The effect is limited when one country tries to handle the issue by market intervention.”

Read more here.

The upsurge due to the BOJ intervention is now stalled at the confluence of two crucial trendlines and 135 round number. Unless price breaks upwards, the major downtrend is still intact.

As the first attempt will usually fails, there is a possibility that the price will retrace downwards to re-test the broken resistance which now should turns into support at 132.00 area.

Only then, we could see whether the BOJ is still insisting on the intervention or not.....

Just for record....
Source: Bloomberg

The yen fell after Japan intervened to weaken its currency for the first time since 2004.

Finance Minister Yoshihiko Noda confirmed the intervention, speaking to reporters today in Tokyo.

The yen traded at 84.09 to the dollar as of 10:58 a.m. in Tokyo. Japan’s currency was as strong as 82.88 earlier, the highest since May 1995, and closed at 83.04 in New York yesterday.

The beast is now moving without a direction between 130.30 and 128.77. As long as the price is entrapped within the range, it is better to stay aside and wait until the price breaks out of the range.

On the other hand, a possible descending triangle is in play on the H4 chart. Even though it is not a textbook pattern; since the current trend is downwards, I am favor of a further southwards journey for the beast unless 130.30 is taken.

Good luck and happy trading.....