FOREX Technical Analysis: USD/JPY Pressing Resistance Before Bank of Japan
Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: The USD/JPY high is on the 61.8% retracement of the decline from March. Elliott wave channeling and Fibonacci relationships suggest that the current level is one of importance as well. Wave 5 is equal to 61.8% of waves 1 through 3 and price closed beneath the Elliott channel after trading through it intraday. A JS Thrust Up formed this week into the well-defined resistance. 4 of the last 5 weekly JS Thrust Ups have given way to weakness immediately. The February instance indicated a bullish breakout. An inside day occurred Friday and the rally from 7907 is either complete in 5 waves or will be with a final push to a slight new high. COT positioning is consistent with turns towards Yen strength.
FOREXTrading Strategy: A drop below 8089 would warrant a short position against the intervening high (8159 at this point).
LEVELS: 8030 8067 8089 8159 8185 8244
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.