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FOREX Trading: USD/JPY Retraces Tuesday Drop-Resistance at 8795

By , Sr. Technical Strategist
09 January 2013 15:01 GMT

Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

FOREX Trading and Technical Analysis Observations

I have no positions right now. After a great December, I’ve been out of tune with markets early in 2013. In order to get back in tune, I need a clear mind (no positions). I’m watching…

We were correct (so far at least) to abandon the bullish EURUSD bias due to the 3 wave advance from Friday’s low. The GBPUSD has already breached Friday’s low and is testing trendline support and the 12/7 low. While this level may lead to some consolidation, the risk is lower as long as price is below 16128 towards the November low (15826-this is also the 50% retracement of the rally from 15268). Be aware of event risk tomorrow (BoE and ECB). My preference has always been to fade kneejerk moves on news. I’ll see where we are tomorrow before offering levels.

The USDJPY inside day breakdown triggered yesterday but Tuesday’s decline has already been completely retraced. I’m looking for resistance from 8795-8815. A response in there would present an opportunity to short against the high (8840).

GBPUSD - Daily

FOREX_Trading_USDJPY_Retraces_Tuesday_Drop-Resistance_at_8795_body_gbpusd.png, FOREX Trading: USD/JPY Retraces Tuesday Drop-Resistance at 8795

Prepared by Jamie Saettele, CMT

USDJPY –60 Minute

FOREX_Trading_USDJPY_Retraces_Tuesday_Drop-Resistance_at_8795_body_usdjpy.png, FOREX Trading: USD/JPY Retraces Tuesday Drop-Resistance at 8795

Prepared by Jamie Saettele, CMT

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

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

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Jamie is the author of Sentiment in the Forex Market.

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09 January 2013 15:01 GMT