USD/JPY August Low at 95.80 and Channel Confluence Below 95

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eliottWaves_usd-jpy_body_usdjpy.png, USD/JPY August Low at 95.80 and Channel Confluence Below 95

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-USDJPY closed last week below the trendline that originates from the June low. It is possible that a 3 month triangle is complete. This is the working assumption as long as price is below 98.72.

-The decline from July would consist of 2 equal waves at 94.89. This level intersects channel support that originates at the July high AND the channel that originates from the March 2012 high on Wednesday!

-The channels are ‘Elliott’ channels. The short term downward sloping channel is a corrective channel. The long term upward sloping channel is an impulsive channel.

Trading Strategy: Moving risk down to 97.50. Be aware of the mentioned confluence on Wednesday just below 95 as possible support. An important low could form near there.

LEVELS: 95.80 96.05 96.39 | 97.14 97.75 98.25

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