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USDJPY Opportunity after False Break through 7900

USDJPY Opportunity after False Break through 7900

Jamie Saettele, CMT, Sr. Technical Strategist

FXCM Expo Videos

Innovative Techniques with Traditional Technical Indicators

Trading with the Elliott Wave Principle

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Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

The USDJPY is in play today. After trading to its highest level since 7/18, the pair reversed sharply following the US CPI print. The pop above 7900 comes following the lowest 5 day range since mid-January (and lowest 20 day range since late December). Similar 5 day ranges were registered in December and October. Each time, the initial move was wrong and completely retraced. This is a function of the false breaks that accompany markets undergoing a shift in volatility expectations. Combined with former support turned resistance above 7900 and the 3 wave (corrective) advances from 7556 (record low) and 7765, the USDJPY is vulnerable.

I continue to ‘believe’ in the bigger picture AUDUSD and NZDUSD turns. Prices are nearing resistance as I type (10500 and 8075).

USDJPY – Daily Bars

USDJPY_Opportunity_after_False_Break_through_7900_body_usdjpy.png, USDJPY Opportunity after False Break through 7900

Prepared by Jamie Saettele, CMT

AUDUSD – Daily Bars

USDJPY_Opportunity_after_False_Break_through_7900_body_usdjpy_1.png, USDJPY Opportunity after False Break through 7900

Prepared by Jamie Saettele, CMT

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter @JamieSaettele

To be added to Jamie’s e-mail distribution list, send an e-mail with subject line "Distribution List" to jsaettele@dailyfx.com

Jamie is the author of Sentiment in the Forex Market.

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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