Looking at the charts, you can see this market has been completely out of control over the last 24 hours. With everything that has been going on in Japan, this really isn’t a surprise. The Bank of Japan stepped in a weakened the Yen after a massive move down in this pair via asset purchases, and the pair bounced hard because of it.
With the break down, and resurgence, the pair is going to be very difficult for traders. There are two clear levels however: the top of Monday’s bar at 82.50, which would show massive strength as that, is where the flush downward started. Another spot would be the 80.50 level as that is where the BoJ got involved. A close below that level would be extremely bearish.
More March 15, 2011 Analysis:
