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USD/JPY Congestion Breaking to Downside

Jamie Saettele, CMT


eliottWaves_usd-jpy_body_usdjpy.png, USD/JPY Congestion Breaking to Downside

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “The USDJPY range has been tightening for 3 weeks now. The confluence of a short term trendline, near term upward sloping parallel channel and 100.60 may provide a difficult area for price to break through. Notice too that the 100.50-101.00 was roughly the breakdown point in May (circled). There was a lot of ‘back and forth’ there before the eventual break.” The USDJPY topped at 100.44 last night and tested 98.94 support late in US trading. Near term resistance is 99.57.

FOREXTrading Strategy: Wrote yesterday that “reward/risk is favorable on a sale into 100.60 but would prefer to do it through GBPJPY, which has traded into big resistance from highs in June and April.” GBPJPY is definitely still in play against yesterday’s high. USDJPY is still too quiet to get involved with.

LEVELS: 97.51 98.23 98.94 99.57 100.15 100.59

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