Jamie's Pick: 03/12/12
The USDJPY has broken out to its highest level since late April 2011. The chart above is an update to the chart published over 3 years ago in Sentiment in the Forex Market. The implications? A MAJOR, potentially multi decade low is in place. What’s more, the 5th wave from the 2007 high unfolded as an ending diagonal. Ending diagonals are typically resolved with a sharp reversal and the rally from the February low fits the bill. Several technical tidbits support the EW view. Weekly RSI has crossed into 70 (longer term BULLISH) and the slope of the 52 week average is now positive. Trading wise, the next objective is 8550 and support next week is 8190, and 8120. Stay bullish as long as price is above 8055.
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