Chart Prepared by Jamie Saettele, CMT
FOREXObservations: If USDJPY weakness is a 4th wave, then price needs to stay above 7982 (allowing for a spike is ok). The response just below 7927 (and right at estimated 7907 support) is a good start. Keep in mind that 4th waves are often more complex than 2nd waves thus we could be in for sideways trading for several weeks too.
FOREXTrading Strategy Implications: I’m wary of trading this from the long side for many reasons including the failed break at above 8061, bearish implications from the S&P (over the course of November…at least), and a high in place on day 2 of the month (opening range implications). There are plenty of interpretations that allow for weakness and this count may very well be wrong. It’s worth keeping in mind, but there are far better setups that warrant action.
LEVELS: 7892 7907 7927 7975 8003 8047