USD/JPY Bearish on Strength is Appropiate after Return to Range

DailyFX

60 Minute Bars

View photo

.
eliottWaves_usd-jpy_body_usdjpy.png, USD/JPY Bearish on Strength is Appropiate after Return to Range

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

FOREXAnalysis: The USDJPY has broken through the previously uncovered close at 97.50. The inability to stay above that level doesn’t bode well for near term bulls. The late day low is in the vicinity of former range highs and the midpoint of the 20 day range, so this is a good place for a bounce. Expect resistance from 97.54 to 98.27. The next estimated support zone is 94.90-95.74.

FOREXTrading Strategy: Wrote last week that I’m “not against trading from the short side if the right scenario develops…would need to see a drop below 98.50 to turn the minor bias down followed by at least 1 session (Asia, Europe, or US) of consolidation.” A recovery back into 98.00-98.50 this week will probably offer a short opportunity.

LEVELS: 94.36 94.90 95.74 97.54 98.27 98.70

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.

Rates

View Comments (0)