USDJPY Breaks Trendline bu Still Faces Former Support above 7900

240 Minute Bars

Prepared by Jamie Saettele, CMT

Earlier this week, “the USDJPY 5 day range of .81% was the lowest 5 day range since January. Similar levels were registered in December 2011 and October 2011. In all instances, the initial move was wrong. Viewed in the context of 3 wave rallies at multiple degrees of trend, a sensible strategy is to short sharp rallies. Watch 79.12.” I remain inclined to treat this move higher as a trap.

LEVELS: 7790 7840 7860 7912 7940 8007