Intraday USD/JPY Trending Lower

With doubts slowly coming in as the doldrums of August set upon traders, there is a fear that September will bring a resurgence of negativity regarding equities and little risk appetite. Seeing this psychology play out is as easy as watching the USD/JPY which has started to trend lower on short term intraday charts.





The 30 minute chart shows a Reversal Channel Down pattern which is indicating that the U.S. Dollar is losing ground to the Yen as there is a shift to a lack of risk tolerance.

The trend across the daily chart is neutral to slightly bullish as last week's Non-Farm Payroll report rallied the Dow and Dollar Index and pulled the USD/JPY up through a Continuation Channel Down pattern.





Both the charts are interesting and look at short and long term psychology. While the daily set up presents more risk especially during the low participation months of summer, it's the 30 minute chart that holds the key to follow-through for the longer term view. Anyone looking for upside movement will be interested in the downtrend line resistance (green) on the 30 minute as it currently sits near 96.80. Any reversal/breakout would trigger through this line. Also watch for exhaustion near this level since it shows resistance within the pattern.

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