USDJPY Rejected at 8150
Prepared by Jamie Saettele, CMT
The USDJPY rally failed at former support last night (8154) and would face additional resistance from the 20 day average and short term trendline resistance at 8180-8200 (4/10 high is also at 8185 and series of former lows from March and April is in the vicinity). While I am of the persuasion that the longer term has turned higher, I remain on the lookout for a new high in the 10 year in order to create divergence that will time the next USDJPY long. What’s more, equities appear vulnerable and a broad sell off in risk likely knocks the Yen crosses down as well. At this point, early May is my best guess regarding timing longs.
Bottom Line (next 5 days) – sideways
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