Daily Bars

eliottWaves_usd-jpy_body_usdjpy.png, USDJPY Faces Trendline and 20 Day Average

Prepared by Jamie Saettele, CMT

The USDJPY faces 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 leads to some Yen strength. At this point, late April (next week) / early May is my best guess regarding the timing of longs. A drop into 8100/20 would warrant longs.

Bottom Line (next 5 days) – sideways