Buy USD/JPY Dips

Despite the intense downtrend, we continue to look for opportunities to buy with the market trading by multi-year lows. Our recommendation today incorporates basic ATR analysis which projects a daily low just over the current multi-year low from the previous week by 83.60. At that point, we believe the pressure will be too intense to prevent the market from overshooting and taking out the current lows to test key psychological barriers by the mid-figure. Any additional declines beyond 83.50 should be limited ahead of a major upside reversal. Fundamentally, the Yen has benefited from safe haven flows and broader USD weakness, and we believe that the Yen should not be treated as a safe haven investment given the economic woes in Japan, and deep concern from officials over the rapid appreciation in the currency. Additionally, the USD remains an attractive currency in current market conditions, and despite the latest selling in the buck, a major reversal back in favor of the Greenback is a very real possibility. This should in turn start to put pressure on the Yen. (It is worth noting that we are also keeping a close eye on Usd/Chf and may look to buy there as well into another dip. Stay tuned). STRATEGY: BUY @83.50 FOR AN OPEN OBJECTIVE; STOP 82.50. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON THURSDAY.