Japanese Yen Cross Pick 03.15.10
I placed a short USD/JPY entry at 90.14, the 100-Day SMA, during the previous week as the pair closed below the 50-Day SMA (90.53) on Wednesday, but the exchange rate bounced back from a low of 90.16 on Thursday, which failed to fill the order. As the dollar-yen maintains the downtrend from the 2007 high (124.13), we are likely to see price action hold below the 200-Day at 91.83 over the near-term, and I expect the pair to test the March lows as the exchange rate appears to be carving a short-term top right around the 91.00 level. As a result, I will keep the sell entry and look to target the 3/4 close at 89.00, with the stop at 90.53, the 50-Day SMA.
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