Hi Everyone,
After covering the Australian dollar extensively this past week, I thought it would be good to share some news with you about the Japanese yen. Since testing the 79.000 level, the USD/JPY has fallen off. Jamie Saettele, Senior Technical Strategist at DailyFX.com, believes this could present an opportunity to go short. Here is an excerpt from his latest article:
The USDJPY is in play today. After trading to its highest level since 7/18, the pair reversed sharply following the US CPI print. The pop above 7900 comes following the lowest 5 day range since mid-January (and lowest 20 day range since late December). Similar 5 day ranges were registered in December and October. Each time, the initial move was wrong and completely retraced. This is a function of the false breaks that accompany markets undergoing a shift in volatility expectations. Combined with former support turned resistance above 7900 and the 3 wave (corrective) advances from 7556 (record low) and 7765, the USDJPY is vulnerable...
After covering the Australian dollar extensively this past week, I thought it would be good to share some news with you about the Japanese yen. Since testing the 79.000 level, the USD/JPY has fallen off. Jamie Saettele, Senior Technical Strategist at DailyFX.com, believes this could present an opportunity to go short. Here is an excerpt from his latest article:
USDJPY – Daily Bars
http://media.dailyfx.com/illustratio...ody_usdjpy.png
The USDJPY is in play today. After trading to its highest level since 7/18, the pair reversed sharply following the US CPI print. The pop above 7900 comes following the lowest 5 day range since mid-January (and lowest 20 day range since late December). Similar 5 day ranges were registered in December and October. Each time, the initial move was wrong and completely retraced. This is a function of the false breaks that accompany markets undergoing a shift in volatility expectations. Combined with former support turned resistance above 7900 and the 3 wave (corrective) advances from 7556 (record low) and 7765, the USDJPY is vulnerable...