USDJPY Finds Support at 50% Retracement
240 Minute Bars
Prepared by Jamie Saettele, CMT
The US 10 year made a new high Monday to create divergence with the Yen. This was the trigger I was waiting for. Despite equities appearing vulnerable, reward/risk justifies longs here. Although it may take several attempts to align with the longer term USDJPY bull trend, I do like that the decline from the March high retraced about 50% of the advance from the February low and today’s decline retraced a little more than 50% of last week’s rally. In other words, the market seems to be scaling to 50% retracements.
Bottom Line (next 5 days) – sideways/higher?
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