Forex Analysis: Trade Update on USDJPY

DailyFX

I remain long the US Dollar (ticker: USDOLLAR) Against the Japanese Yen with an average price of ¥79.02, and the sharp USDJPY sell-off clearly is cause for concern.

I continue to believe that the USDJPY has set a long-term bottom , but in the short-term, we will need to see the pair hold above ¥79.30 to stay in this position.

At time of writing, the pair had bounced off of an intraday double-bottom at ¥79.80, and I'll keep a close eye on its next moves.

I'll remain long USDJPY until further notice, but I'll close half of the position if we drop below ¥79.30.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments (0)