News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCZ9dzS https://t.co/KD6mfkiCaW
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/TEoSjMpMBo
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/H9fW9ewiQd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/yLt0ldtMsV
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/ZwwuTzTeac
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/4DGXwA8vqs
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
Japanese Yen and Nikkei Trade Setups-1st and 4th Quarter Symmetry?

Japanese Yen and Nikkei Trade Setups-1st and 4th Quarter Symmetry?

Jamie Saettele, CMT, Sr. Technical Strategist

2013 began with strong trending moves in the Japanese currency and stock market. The USDJPY, Nikkei 225, and ZARJPY have broken through May-July trendlines. The seeds may be sown for these markets to end the year as they began…in strong trends.

Subscribe to Jamie Saettele's distribution list in order to receive FX trading strategy delivered to your inbox.

Jamie is the author of Sentiment in the Forex Market.

USD/JPY

Daily

Japanese_Yen_and_Nikkei_Trade_Setups-1st_and_4th_Quarter_Symmetry_body_usdjpy.png, Japanese Yen and Nikkei Trade Setups-1st and 4th Quarter Symmetry?

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-USDJPY low for the month at 98.27 is still the first trading day of the month. In bull trends, early month lows and late month highs are common.

-Last Friday’s (9/6) USDJPY slide found low at the topside of former trendline resistance. Daily structure is considered healthy as long as the daily close is above 98.80 (prior closing peak).

-A small range key reversal on Wednesday is still in place but the dip found support near last Friday’s close and from former resistance at 99.14 (8/23 high).

-Daily RSI has exceeded 60 twice in the last 2 weeks but failed to stay above the barrier. This is a concern for bulls.

Strategy – Looking for a low at more or less current level. Watch 98.80-99.15 (20 day average and line that extends off of 9/6 and 9/12 lows).

Nikkei 225

Daily

Japanese_Yen_and_Nikkei_Trade_Setups-1st_and_4th_Quarter_Symmetry_body_nikkei.png, Japanese Yen and Nikkei Trade Setups-1st and 4th Quarter Symmetry?

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-The Nikkei 225 broke through the line that extends off of the May and July highs on Monday (9/9). The break increases confidence in the USDJPY break one week earlier (on 9/2).

-The decline from the July high to the August low is in 3 waves (corrective), implying that 14963 will be broken before 13160 is broken. Wave C took the form of a diagonal and has been completely retraced.

-The rally from 13160 unfolded in 5 waves (impulsive). Impulsive channeling suggests that the presented account is the correct count (impulsive channel – connect waves 2 and 4, then extend a parallel line to the top of wave 3. That line often estimates the end of wave 5).

-The pullback from 14578 stopped 10 points shy of the former 4th wave area (14158-13675) on Thursday. 5 wave rallies are followed by 3 wave declines that often end near the previous 4th wave extreme (circled), which is also the 61.8% retracement in this instance. That level is support if reached but I’m not dismissing gains from the current level as real markets rarely follow textbook scripts and the near term momentum profile has changed. Since the 13160 low, price tops have occurred when RSI (4 hour) is above 70 and price lows when RSI is near 50. This is an example of a bullish momentum profile (see the left side of the chart as well).

Nikkei 225

4Hour

Japanese_Yen_and_Nikkei_Trade_Setups-1st_and_4th_Quarter_Symmetry_body_nikkei_1.png, Japanese Yen and Nikkei Trade Setups-1st and 4th Quarter Symmetry?

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

ZAR/JPY

Weekly

Japanese_Yen_and_Nikkei_Trade_Setups-1st_and_4th_Quarter_Symmetry_body_zarjpy.png, Japanese Yen and Nikkei Trade Setups-1st and 4th Quarter Symmetry?

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-ZARJPY has made important lows at this time of year in recent years. The 2011 low occurred in September. The 2012 low occurred in October. In other words, frequency of lows is roughly 1 year.

-Price has broken the line that extends off of the May and July highs as well as the series of highs from 8/9-8/15.

-Weekly RSI(13) has crossed above 40. A bullish momentum profile is one in which RSI exceeds 70 at price highs and holds above 30 at price lows (the higher the RSI figure at the low, the stronger the market).

-‘Launch points’ for extended rallies have occurred as double bottoms of sorts in recent years. In 2011, lows were made in September and November. In 2012, lows were made in June and October. This year, lows have been made in June and August (remains to be seen if the August low holds…but off to a good start).

-Getting ahead of ourselves here…but price could be forming a massive inverse head and shoulders pattern (upward sloping as well).

Strategy – Watching for support from the top side of the broken trendline near 9.84.

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

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

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

DISCLOSURES