Jamie's Pick: 12/05/11
I want to be long USDJPY but risk parameters (SSI) do not allow me to trade from the long side. My bullish reasoning is as follows -
There are signs that the long term USDJPY trend is reversing (from down to up). Those signs include bullish RSI divergence at the October low and a positive slope on the 13 week average. A push through the trendline that has defined the trend since the May 2010 high is required in order to inspire confidence in the upside. Objectives span the 8050-8300 range. The low for the month so far is the first day of the month as well, which is statistically significant. A stop would be placed below the final day low of November, which was a larger range bar (low is 7728).
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