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FOREX Trading: USD/JPY Pattern Worth a Look Before NFP

By , Sr. Technical Strategist
06 December 2012 14:52 GMT

Afternoon Technicals (all USD crosses, crude, gold)

Other TA (crosses, COT, etc.)

After a false break through the trendline that extends off of the September and October highs, the EURUSD is 100 pips off of the high. Many are expecting ‘just a dip’. I’m not so sure. Once again, the market responded to the close of the reversal day (in this case the September 17th high). Former resistance at 13008 is viewed as potential support but a drop below the first day of the month low at 12980 would warrant bearish consideration until at least 12880.

Sideways trade in the USDJPY since the high may compose a triangle. Triangles occur in waves 4, B, and X. The current pattern would probably compose a 4th as suggested by impulsive channeling. The implications from the 4th wave interpretation over the next day are for weakness towards 8200 before a terminal thrust higher through 8283. The idea fits nicely with NFP tomorrow.

EURUSD – Daily

FOREX_Trading_USDJPY_Short_Term_Pattern_Worth_a_Look_Before_NFP_body_eurusd.png, FOREX Trading: USD/JPY Pattern Worth a Look Before NFP

Prepared by Jamie Saettele, CMT

USDJPY – Daily

FOREX_Trading_USDJPY_Short_Term_Pattern_Worth_a_Look_Before_NFP_body_usdjpy.png, FOREX Trading: USD/JPY Pattern Worth a Look Before NFP

Prepared by Jamie Saettele, CMT

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele

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06 December 2012 14:52 GMT