BIG PICTURE: “The decline from the 2007 high is viewed as a leading diagonal. Leading diagonals are often followed by sharp second wave advances (sometimes as much as 78.6%). The 61.8% and 78.6% levels are 10915 and 11577. Trading above 9500 would put the pair back on track towards those levels.” Near term, the USDJPY has traded in a range defined primarily by 9400 and 9000. A short term support line was broken and the rebound leaves a potential short term head and shoulders top. I am cautiously bearish to begin the week.
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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