By Russell Glaser – The USD/JPY certainly experienced an interesting trading day yesterday. At one point the pair broke both its minor and major trend lines, falling to a significant support level.
1. Below, the USD/JPY daily chart shows the price action yesterday. The pair fell to the price level of 88.10, a price that pair bounced off of 3 other times. The sharp fallout of the pair occurred at the same time that the Dow Jones Industrials Average fell 998 points.
2. Another short term support line sits at the price of 92.80.
The short term trend line can be considered broken if the pair closes below the trend line for the second consecutive day. The chart goes to show the significance of support and resistance lines as many times large price moves will advance or fall towards a significant price level.
Forex Market Analysis provided by Forex Yard.
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