USD/JPY Sideways Trade; Unsure if Dip or Rip is Next

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eliottWaves_usd-jpy_body_usdjpy.png, USD/JPY Sideways Trade; Unsure if Dip or Rip is Next

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Recent comments were that “the break above 99.94 was from a triangle (with an exceptionally shallow E wave). The break offers several tidbits of information. Breaks from triangles are often terminal so this may be the final run before a stronger decline. The width of the triangle (99.94-95.79) can also be used to determine an objective. Add the width to the breakout level and you get 104.09. Keep in mind the trendline that extends off of the March and April highs…that line is at about 103.50 on Wednesday.” A key reversal unfolded on Wednesday, which is worth paying attention to with the rally stopping at triangle width x 1.618.

FOREXTrading Strategy: Rally is mature to be sure but no way if we get to the resistance line or 104.08 objective before something bigger on the downside. Below 101.25 would suggest price is vulnerable. Considering how one-sided the psychology of this market is…a drop could accelerate quickly as those late to the game exit simultaneously.

LEVELS: 100.78 100.26 101.70 102.76 103.50 104.08

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