USD/JPY Swan Dives off of Trendline



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eliottWaves_usd-jpy_body_usdjpy.png, USD/JPY Swan Dives off of Trendline

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: I wrote yesterday that “it’s possible that the USDJPY takes a breather from directional moves and trades in a range for at least the next few weeks. Price is over 400 pips off of Friday’s low and has reached resistance from a trendline confluence (underside of the trendline that extends off of November and April lows and recent short term resistance line) and former low at 98.70. Support is estimated from the uncovered close at 97.51 and Thursday’s 1 pm close (big volume) at 96.62.” After holding 96.60 for most of the day, the USDJPY plummeted towards the bottom of the range in late US trading. The drop feels scary…but it should if price is trying to form some sort of low.

FOREXTrading Strategy: Active range trading

LEVELS: 94.45 95.00 95.68 96.60 97.50 98.36

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