USD/JPY Fills Recent Gap; NFP Low is Important

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eliottWaves_usd-jpy_body_usdjpy.png, USD/JPY Fills Recent Gap; NFP Low is Important

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-Price gapped higher for the second consecutive week. This week’s gap was filled. Price dipped below last week’s close of 99.11 before rebounding.

-Price is below the line that extends off of the 8/28 and 9/6 lows. Daily RSI (10 day) has failed to stay above 60 on the last 2 attempts. The market wasn’t able to stay above its open price for the week either. That’s not a good tape for a market that has ‘broken out’.

Trading Strategy: Action isn’t right for a breakout. Moving to flat. Watch for resistance from 99.70 (week open) to 99.89 (Wednesday’s close). A trendline confluence is possible support near 98.20.

LEVELS: 98.20 98.50 99.00 | 99.70 99.89 100.60

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