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The USD/JPY sat still today, and with good reason. We now know that several central banks around the world intervened in this pair a few days ago, and now it leaves traders to wonder how to approach it.
The move did fail at the bottom of the previous pennant that we have been watching – so technically it is still a very bearish chart. However, most traders want nothing to do with fighting random central banks, and that will probably keep them away from this pair.
The floor has been put in at 77, with the ceiling looking like 81. Of course, the central banks could jump in at any time, and therefore this pair will be dangerous to get involved with. Expect the bias to be very neutral for the short-term.
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More March 22, 2011 Technical Analysis:
