USD/JPY: Large Diamond Pattern Warns of Potential Weakness
USD/JPY is exhibiting a large diamond pattern in the daily time frame. This suggests scope for weakness in the days ahead. However, if a break over the recent high at 99.95 (02/08/2013 high) can be achieved this will negate this daily structure, returning us to the larger consolidation phase that we mentioned in recent reports.
The medium-term technical configuration remains positive as long as the support at 93.79 holds. However, we would favour a trendless environment in the next few weeks with a slight bearish bias given the short-term overbought conditions. Key resistances are 101.53 and 103.74.