The USDJPY has soared since yesterday’s low…over 200 pips. The rally has reached the 50% retracement of the decline from 9217. This level is reinforced by former congestion (circled). The next level of resistance would be the 61.8% of the decline at 9063. From a bigger picture perspective, I favor the downside against 9217, targeting 8690-8736 (8690 is the 100% extension of the decline from 9380). A decline to that level may complete an A-B-C decline from 9380.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
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