Charts I’m Watching: May 6, 2014

It’s all about USDJPY, today.  The flag pattern completed as expected and the pair has broken down from the white rising channel, plunging to 101.53 so far.

2014-05-06-USDJPY 15 min 0600The pattern targets 101.02, though there is potential Fib support at multiple levels including 101.51, 101.46 and 101.31.

Most of the action occurred overnight, so the impact on ES has been muted.  But, there should be more downside after the latest backtest completes.  The .786 at 1864.99 would make for a good target once the .500 at 1871 falls.

2014-05-06-ES v USDJPY 60 min 0600

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