My trading focus remains on the Yen crosses. That’s where the action is so that’s where I’ll play. By any measure-COT, RSI, difference from major moving averages (called the disparity index)-Yen crosses are insanely overbought which raises the risk of ‘snapback’ much like a rubber band that has been stretched too far.
The USDJPY has slipped below 8700 and a drop below yesterday’s 8650 low would create an outside day and present a short opportunity against the high. Initial support is 8565 but a return to 8420/60 (breakout level) isn’t out of the question.
Check out my morning article for more potential setups
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele
Subscribe to Jamie Saettele's distribution list in order to receive actionable FX trading strategy delivered to your inbox.
Jamie is the author of Sentiment in the Forex Market.
